European diesel prices surged by as much as 7% after reports that Donald Trump is considering a 90-day ban on US exports, raising fears of sharply higher prices and potential supply disruption in Britain.
The UK imports more than half of the diesel it consumes, with almost a third of those imports coming from the US. Analysts warned pump prices, currently averaging 197.31p a litre, could quickly rise above £2.50 and potentially £3 if restrictions are imposed.
Greg Newman, chief executive of Onyx Capital, said a ban would be “a disaster” and result in “much higher prices”, adding: “High diesel prices would hit haulage, farming and construction, impacting food and goods inflation.”
Elizabeth de Jong, chief executive of Fuels Industry UK, said: “The recent discussion in the US around diesel exports has shown once again that we cannot solely rely on overseas production for domestic energy security.”
The UK Government said forecourts were being supplied normally and Britain had a “diverse and resilient supply”.
FSTE100
The UK's flagship share index, the FTSE 100, was down 26-points at 10,678 shortly after opening this morning.
Brent crude oil futures were up 0.52%, sitting at $103.62 a barrel this morning.
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