Britain's diesel prices near record high as global supply tightens

Global diesel supplies are critically strained by wars and potential US export restrictions, pushing Britain's average diesel price to £1.98 per litre, just one penny below the record high, with analysts warning prices could reach £3 per litre if the US enacts a ban. The crisis stems from reduced Russian exports due to Ukrainian drone attacks and Middle East disruptions from the US-Iran war, cutting roughly two million barrels per day of supply just as autumn demand peaks. Britain imports 55% of its road diesel, with 31% coming from the US, and holds only six weeks of reserves. Governments worldwide are responding with subsidies, tax cuts, and fuel vouchers to prevent unrest, though protests have already erupted in Bolivia, Guatemala, and Syria. Analysts warn that a US export ban could backfire, reducing refinery output and raising petrol and jet fuel prices domestically.