The U.S. is calling on Europe to immediately release some of its diesel reserves as the price for the fuel hits an all-time high.
U.S. President Donald Trump is pushing Europe to release some of their diesel reserves, saying that U.S. farmers and truckers should not carry the burden of global supply disruptions.
Diesel prices in America have surged to a record high of $6.50 U.S. per gallon amid supply disruptions caused after the Trump administration attacked Iran earlier this year.
If Europe fails to act, Trump said he will have no choice but to proceed with a diesel export ban as part of an attempt to prevent diesel prices from moving any higher.
However, economists have warned that an export ban on diesel fuel is unlikely to lower prices in the long run and could exacerbate the problem.
Trump is under political pressure to tackle soaring fuel prices ahead of the midterm elections in November, where affordability has become a top-of-mind issue for voters.
The prospect of the U.S., which is the world’s biggest diesel exporter, implementing a ban has raised concerns in Europe.
The U.S. supplies nearly half of the European Union’s diesel imports, according to the International Energy Agency.
With winter approaching, Europe cannot afford a U.S. export ban on diesel fuel, say analysts.
Member states from the European Union (EU) are scheduled to hold discussions on Oct. 2 aimed at developing a coordinated response to soaring diesel prices.
France has reportedly proposed that the European Union release 50 million barrels of diesel fuel and possibly 50 million barrels of crude oil.
Unlike the U.S., Europe is a net importer of energy products that include gasoline, diesel and natural gas.
