Diesel supplies robust, insists Government as prices hit £2 for first time

The Government has dismissed concerns about diesel supplies as prices reached a record high of £2 a litre for the first time.Transport minister Keir Mather said the public should not be concerned as supply of diesel is “robust” and Britain has a wide range of sources.Mr Mather said “inherent resilience” is built into the system, as average prices tipped over the £2 mark for the first time ever.The RAC said average prices are now 200.01p. The previous record high was 199.09p, set in June 2022 after Russia’s invasion of Ukraine.It came as Britain joined crisis talks with Brussels to discuss whether to release fuel stocks amid rocketing prices.The US put mounting pressure on European countries on Thursday to use their reserves, with treasury secretary Scott Bessent saying they should “immediately” begin to do so.Earlier in the day, US President Donald Trump said he “may” call for Europe to draw down on their stores.The UK imports nearly 55% of its diesel, with the US providing nearly a third of that amount.Diesel prices have soared in recent months because of the disruption to global supplies caused by the US-Israeli war against Iran and the ongoing conflict between Russia and Ukraine.Mr Mather told Sky News on Friday: “I want to reassure people this morning that the United Kingdom has got a diverse range of supply when it comes to diesel.“We have resilience built into our system for that reason.“We are working very closely with our US counterparts to stress the importance of that relationship, and the importance of sustaining flows of diesel around the world, but also working through international fora in the International Energy Agency and partners in Europe from whom we get a proportion of our diesel imports as well.”Fuel prices at a petrol station in Tynemouth, Tyne and Wear (Owen Humphreys/PA)PA WireHe added: “Although prices have gone up at the pump, the Government is aware of that and the freeze in fuel duty is still in place.Read More“People shouldn’t be concerned about shortages because of the inherent resilience that is built into that system.”RAC head of policy Simon Williams said the price rises are showing “no signs” of slowing down.He said: “The cost of filling up an average family car is now £110, almost £32 more than it was at the start of the US and Iran war.“This will be very challenging for households and companies that drive a lot of miles, from commuters, haulage and delivery firms, businesses with large fleets all the way through to sole traders.Keir Mather said supplies were robust (Danny Lawson/PA)PA Archive“In a cruel twist, it’s diesel vehicles, which were once considered the most cost-effective option for lengthy journeys, that are now burning a hole in people’s pockets.”As a member of the International Energy Agency, the UK is required to keep oil stocks equal to at least 90 days of net oil imports in reserve.It is thought these can be used to respond to severe supply disruptions in the global market.If Washington was to introduce a ban on exporting diesel to prop-up supplies in the US, this would force Britain to compete with other countries for an alternative.In a post on X on Thursday, Mr Bessent said: “Our European partners should accelerate delivery on their existing commitments and make additional supplies immediately available to address ongoing disruptions.Diesel prices have soared since the start of the war in Iran (Ben Birchall/PA)PA Wire“American farmers, truckers, and businesses should not be left carrying the burden of a global diesel shortage. America is doing its part.“We look to our allies to match their commitments with action.”EU member states will meet the European Commission on Friday to discuss the issue.Mr Mather was asked by Nick Ferrari on LBC whether he agreed with Mr Trump about Europe using their diesel reserves.He said: “We’re working closely with our European partners on diesel supply. It means we’re continuing those discussions about how we retain our resilience and robustness of our supply chains.“President Trump is welcome to make those comments, we’ve got to focus here at home about ensuring that we have diversity of supply into our economy.“Our European partners are absolutely central to that, particularly the flows of diesel coming through the Netherlands.”