Should the UK release emergency diesel reserves to help lower fuel prices?
UK average diesel prices reached a record £2.00 per litre on 2 October 2026 amid global supply disruptions from conflicts in the Middle East and Ukraine plus export restrictions from China. As an IEA member the UK holds emergency oil stocks equivalent to 90 days of net imports, mainly through industry obligations rather than a central government reserve, and these can be released during severe supply shocks. The government has joined G7 and EU talks on coordinated releases after US pressure, while insisting domestic diesel supply remains robust with diverse import sources.
5 Opinions
If we drain our mandatory 90-day reserve today, international rules force us to buy it back tomorrow... at the peak of the next price shock. There is literally no point doing this. Maybe we should focus on reducing uel duty??
If this isn't an emergency, what is?
As of the end of Q1 2026, total UK holdings were about 10.2 million tonnes. Under UK rules around 67.5 days of domestic net consumption. Under normal demand, pure commercial diesel inventories would last on the order of roughly 3 weeks. These are emergency reserves, should not be mindlessly disposed. I have another idea - fuel duty and VAT are about 43% of the price. Slash them by half.
It's not an easy answer. It rather depends on how long the situation is going to persist. If we end up in a situation where our reserves are severely depleted, things could get a whole lot worse. It's also galling that Trump is calling the shots here, bullying countries into doing this because of a problem largely exacerbated by his somewhat disingenuous war with Iran.
The UK’s reserve provision is grossly inadequate. We need to both use them to help smooth prices, and also generate the capability for holding significantly higher reserves in the future.