Diesel price could hit £3 a litre with motorists paying £165 to fill a tank if Trump brings in US export ban, motoring organisations say

Diesel prices were today closing in on an all-time high amid fears they could hit £3 a litre if Donald Trump brings in a 90-day ban on US exports, motoring experts say.Drivers across Britain already now pay an average of 197.75p for a litre of diesel - just over a penny away from the 199.09p record set in June 2022, according to the RAC.The group added that many forecourts are already charging more than the record figure, and the question facing motorists is: 'How far above £2 a litre will it climb?'Filling up a 55-litre family car with diesel now costs £30 more than it did at the start of the US-Iran war in February at £108.76, because of ongoing global supply concerns.The RAC said that 'only a sudden and sustained drop in the cost of oil' can prevent average diesel prices heading above £2, which 'sadly appears highly unlikely'.Petrol has also hit a new Iran war high at 173.32p, but this is far below the 191.54p record from July 2022. A petrol fill-up costs £95 – £22 more than before the conflict.Now, UK industry experts are concerned that fuel prices could surge further after reports that the US President is considering plans to stop diesel being sent abroad.The price of European diesel rose by 7 per cent after a report about the proposals in Politico, although this has been dismissed by the White House as 'fake news'. A board shows the prices of regular diesel and unleaded at a petrol station in London yesterday The average diesel cost at pumps across the European Union hit a record of €2.23 (£1.92) per litre today, according to AFP analysis of European Commission data.Average diesel prices in America were $6.52 a gallon (£4.93 a gallon or £1.30 a litre) yesterday - up 76 per cent from a year ago, according to US motoring group AAA.High fuel prices are a risk for Mr Trump as his fellow Republicans seek to maintain narrow control of both chambers of Congress in the November 3 elections.A US diesel export ban could help reduce fuel prices in America, but this is uncertain – and it would likely significantly increase costs for big importers such as the UK.Ashley Kelty, a research analyst at investment bank Panmure Liberum in Edinburgh, warned a ban would mean it is 'not unreasonable to think £2.50 a litre - or higher - diesel is on its way.'He told the Daily Mail: 'With the mid-terms fast approaching, Trump is keen to find any measure that may help lower prices for voters.'But while this plan has the right optics, it's not one that has been considered in depth given the inherent economic weaknesses that could see the policy actually making things worse.'Mr Kelty also said that a 'tightening of the market and displacement of cargoes bound for Europe will push prices up' in Britain.He added: 'UK inventories are small. The UK only keeps a few days' worth of diesel supplies, despite importing more than 20 per cent of its diesel with users running on a JIT (Just-in-Time) logistics model.'With less dedicated storage than France or Germany, and as circa 60 per cent of UK road fuel is diesel, any tightening in the north-west European market will see prompt price response at the pump even without a direct supply interruption.'Adam Bell, a former energy department official and consultant at Stonehaven in London, said a US export ban 'would remove a very large source of diesel from the global market'.He added: 'It would not lead to physical shortages in the European market as we would outbid Latin American and Asian customers for cargoes that would otherwise flow there. But it would put up prices considerably. 'Ironically, it would also be unlikely to lead to significant price reductions in the US market as many producers would simply take the opportunity to undertake maintenance they have been putting off and would simply remove capacity from the market.'It remains a terrible time for anyone driving something not powered by electricity.'Asked whether £3 pump prices were a possibility in the event of an export ban, Mr Bell told the Daily Mail that it was 'currently unknowable with any real certainty'.He added: 'The Government may opt to roll out reserves to hold down prices, demand destruction could be considerably higher than expected, all manner of confounding factors. The only certainty is that prices will go up.'A price of £3 would see motorists pay £165 to fill up a family car with a 55-litre tank.RAC head of policy Simon Williams said: 'The price of diesel continues to move steadily towards a new all-time high.'He added: 'With concerns over the global supply of wholesale diesel, the question facing drivers is no longer "when will the average price exceed 199.09p?" but "how far above £2 a litre will it climb?".'Only a sudden and sustained drop in the cost of oil can prevent an average diesel pump price of over £2 a litre happening, which sadly appears highly unlikely.'It comes as Chancellor John Healey is facing pressure to take measures at next month's Budget to alleviate the impact of rising costs on the public.Last weekend, Lib Dem leader Sir Ed Davey urged Prime Minister Andy Burnham to cut fuel duty by 10p a litre at least until Christmas to ease cost-of-living pressures.He said the move could be paid for through the money higher oil, gas and energy prices bring into the Treasury coffers and give some relief amid the rise in the cost of getting around caused by 'Donald Trump's idiotic war with Iran'.