Chancellor John Healey confirmed the UK is in direct talks with US authorities to halt a threatened diesel export ban. He also activated domestic fuel reserves. The announcement arrives as domestic diesel prices hit a new record high on Monday, driven by global supply disruptions.

The RAC reported that the average litre of diesel cost 199.33p on Monday. That figure breaks the previous peak of 199.09p recorded in June 2022. Petrol prices remain under pressure as well, currently standing at 174.23p per litre. These spikes follow seven months of disrupted oil production and transport across the Middle East, compounded by ongoing conflicts involving Iran, Russia, and Ukraine.

US President Donald Trump has threatened to restrict diesel shipments. He stated at the weekend: "We're thinking about it very seriously." White House sources indicate the potential ban aims to lower costs for American consumers ahead of the midterm elections. The move poses a direct challenge to British markets, given that the UK imports around a third of its diesel from the United States.

Healey described current pump prices as extreme and emphasized that diplomatic resolution remains the only sustainable fix. "Fundamentally, what we need is a settlement in the Middle East. We need an easing of the pressure of costs on business, the costs on households and on ordinary families that we see at the pumps in the most extreme level today for diesel." The government is preparing a budget for 28 October designed to cushion the economic impact.

Fuel costs will face additional pressure when a duty freeze from 2022 expires at the end of the year. Tax rates are scheduled to rise by 3p in January and by 2p in March. Healey stressed that the administration is working closely with American officials to secure supplies while preparing for potential restrictions.