The European Union on Friday confirmed its opposition to any possible ban on U.S. diesel exports, calling for coordinated action to contain the sharp rise in fuel prices amid U.S. pressure on European countries to release some of their strategic reserves.
The weekly average diesel price at European filling stations reached a new record of 2.24 euros per litre, up by one cent from the record set the previous week, according to national data published by the European Commission on Thursday. The price increase coincided with the war in the Middle East and disruption to shipping through the Strait of Hormuz and the Bab el-Mandeb Strait.
Pressure to release reserves
The administration of U.S. President Donald Trump is pressing European countries to withdraw diesel from their strategic reserves and release it onto the market, amid reports that Washington has threatened to ban exports of the fuel to the European Union if Brussels does not respond.
U.S. Energy Secretary Chris Wright said Europe could help improve the situation, calling for a coordinated release of diesel stocks onto the market as winter approaches. U.S. Treasury Secretary Scott Bessent also urged European partners to speed up their commitments and secure additional supplies to address the continuing disruptions.
In response, European Commission spokeswoman Anna-Kaisa Itkonen said the bloc was ready for collective action with the International Energy Agency to withdraw quantities from its countries’ strategic reserves.
Warnings over the consequences of a ban
A ban on U.S. diesel exports would undermine our confidence in the partnership with the United States.
European Trade Commissioner Maroš Šefčovič described obstructing diesel exports, which are used particularly in the transport and agricultural sectors, as an unpleasant surprise, warning during meetings of Group of 20 trade ministers in the United States that the consequences for the European economy could be extremely serious. Šefčovič did not confirm whether Washington had actually issued a threat to impose a ban.
U.S. Trade Representative Jamieson Greer said on the sidelines of the meetings that both sides were willing to work together to find a solution to the crisis. EU countries held a meeting on Friday to formulate a unified response to rising diesel prices and U.S. pressure.
French President Emmanuel Macron called on the Group of Seven countries to coordinate efforts to lower fuel prices and avoid imposing export restrictions. The Élysée Palace said, following a telephone call between Macron and Trump, that the French president had stressed the group’s shared interest in coordinated action.
British coordination and price concerns
British Energy Secretary Martin McCluskey held a call with his European counterparts on Thursday to discuss the possible ban. A person familiar with the discussions said preparing a coordinated response with other countries, including EU members, would be a sensible step, noting that European reserves remained from a coordinated drawdown of strategic fuel stocks carried out earlier in the year.
A British government spokesman said the country had diverse and flexible supplies and that coordination was continuing with international partners and the U.K. fuel sector. The government stressed that there was no reason for concern about a possible diesel shortage, despite expectations of further price increases.
In the United States, diesel prices reached a record 6.53 dollars per gallon at the end of September, according to the American Automobile Association. Bessent said farmers, truck drivers and U.S. businesses should not have to bear the burden of a global diesel crisis alone.
