Transport minister Keir Mather has said people should not be concerned about diesel shortages, as the G7 agreed to release 100 million barrels of strategic petroleum reserves over four months in response to disruption and soaring prices.
The coordinated release, agreed by G7 leaders on Friday, is intended to stabilise energy supplies and shield households and businesses from price shocks. The agreement includes a substantial release of diesel within the first 20 days, coordinated through the International Energy Agency.
The UK Government has maintained that the country’s supply remains secure despite diesel prices reaching a record high of 200.01p per litre on Friday, according to RAC figures. The previous record was 199.09p per litre, recorded in June 2022 after Russia’s invasion of Ukraine.
## Minister says UK supply is resilient
Mr Mather said Britain had a diverse range of diesel sources and that resilience was built into the supply system.
“I want to reassure people this morning that the United Kingdom has got a diverse range of supply when it comes to diesel,” he told Sky News.
“We have resilience built into our system for that reason.”
He said the Government was working with US counterparts, the International Energy Agency and European partners to sustain diesel flows. He also pointed to the continuing freeze in fuel duty, while acknowledging that pump prices had increased.
“People shouldn’t be concerned about shortages because of the inherent resilience that is built into that system,” he said.
The UK imports nearly 55% of the diesel it uses, with the US providing around a third of those imports. The reports also identify European supply routes, particularly flows through the Netherlands, as important to Britain’s supply chain.
## G7 agrees coordinated reserve release
The G7 agreement followed discussions about whether countries should draw on fuel stocks amid pressure from the US for European nations to use their reserves.
US Treasury secretary Scott Bessent had said European countries should “immediately” make additional supplies available. US President Donald Trump had also said he “may” call for European countries to draw down their reserves.
Following the G7 call, Foreign Secretary Ed Miliband said members had agreed coordinated measures to stabilise energy supplies, strengthen supply chains and protect households and businesses from price shocks.
The leaders said they would coordinate maintenance schedules at G7 refineries to avoid simultaneous shutdowns and increase utilisation where feasible. They also encouraged countries with significant refining capacity to increase production of refined products, particularly diesel.
The G7 statement said the group would coordinate a release of 100 million barrels through the IEA, beginning immediately and taking place over four months. It said the release would include a substantial diesel component during the first 20 days, involving G7 members and partners.
The leaders also reaffirmed a commitment to avoid restrictions on energy and energy-product trade between G7 countries. They called on producers not to impose bans that could increase market tensions.
That position appears to address concerns that the US could restrict diesel exports. Mr Trump has said he was “thinking” about introducing an export ban, a move that would force Britain to compete with other countries for alternative supplies.
## Prices continue to affect households and companies
The reserve release comes as diesel prices have moved above £2 a litre for the first time in the UK. The RAC said the average price reached 200.01p on Friday, after having stood at 199.79p on Thursday.
RAC head of policy Simon Williams said the rises were showing “no signs” of slowing down. He said filling an average family car now cost £110, almost £32 more than at the start of the conflict involving the US and Iran.
“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,” he said.
Mr Williams added that diesel vehicles, previously regarded as a cost-effective option for long journeys, were now placing greater financial pressure on their owners.
Higher fuel prices are also increasing transport costs and adding pressure to business supply chains. Fhaheen Khan, senior economist for Make UK, said uncertainty in global energy markets affected costs across manufacturing, logistics and the wider economy.
Angel Talavera, chief European economist for Oxford Economics, said a full US diesel export ban could lift European diesel prices by 40% to 50%. He described the possible consequences for consumers as “devastating”.
The figures and forecasts describe significant pressure on consumers and businesses, even as the Government says the UK is not facing a shortage.
## Reserves offer temporary protection
The UK, as a member of the International Energy Agency, is required to maintain oil stocks equal to at least 90 days of net oil imports. These stocks can be used in response to severe disruptions in global markets.
However, Jonathan Owens, an operations and supply chain expert at the University of Salford, said releasing reserves would be a short-term measure rather than a solution to the underlying problems.
“Releasing emergency stocks can provide an important short-term buffer,” he said. Additional diesel could help maintain availability, reduce immediate supply pressures and potentially limit extreme price movements.
He said the move could also give businesses time to adjust logistics, sourcing and inventory plans. But he described emergency stocks as “effectively an insurance policy”, warning that using them would reduce protection against future disruption until supplies were replenished.
“Emergency stocks can provide valuable breathing space, but they are a short-term intervention rather than a long-term solution,” Mr Owens said.
He added that reserve releases could address the immediate effects of a supply shock but would not resolve issues including weaker refining capacity and dependence on international energy markets.
## Focus remains on supply security
The disruption to global supplies has been attributed in the reports to the conflict involving the US and Israel and Iran, as well as Russia’s ongoing war in Ukraine. The passage of oil tankers through the Strait of Hormuz has also been identified as a source of continuing disruption.
Against that backdrop, European countries have been discussing whether to release their own fuel stocks, while the UK Government has stressed the importance of maintaining a diverse network of suppliers.
Mr Mather said Britain would continue working with European partners, including on diesel flows through the Netherlands. Asked whether he supported calls for Europe to use its reserves, he said the Government’s focus was on ensuring diversity and resilience in the UK economy.
The G7 reserve agreement provides a coordinated response to immediate market pressures, while the commitments on energy-product trade seek to reduce the risk of additional restrictions. But the expert assessments cited in the reports indicate that reserve releases cannot by themselves resolve long-term exposure to volatile international energy markets.
For motorists and businesses, the immediate issue remains the cost of diesel. The Government’s message is that supply is robust and shortages should not be expected; the G7’s intervention is intended to help stabilise a market where prices have already reached record levels.
