Image source, EPA

A haulage industry boss describes the impact of higher fuel prices as "catastrophic".

Speaking to the BBC, Lesley O'Brien from Freightlink Europe explains that fuel has gone up 48% since the beginning of the year, which is putting £33,000 plus VAT on her costings every month.

O'Brien says those costs can't be absorbed and have to be passed on, which impacts the cost of food and other goods for everybody.

She says the government must step in to prevent more haulage companies "going to the wall" and suggests a reduction in VAT, an extension of the fuel duty freeze and an essential user rebate.

The European Union (EU) says it is ready for collective action with the International Energy Agency (IEA) on fuel stocks.

It says that it has rejected Washington's threats to ban diesel exports unless the EU releases more of its own stock.

According to the Reuters news agency, France has proposed that European countries release 50 million barrels of diesel, and that IEA members release 50 million barrels of crude oil.

The EU says that a ban would not be beneficial to anyone.

The UK is a member of the IEA, and is required to keep oil stocks equal to at least 90 days of net oil imports in reserve.

EU members discussed that any agreement on further diesel stock releases should include a US commitment to avoid a unilateral diesel export ban.

RAC head of policy Simon Williams says 55% of the UK's diesel is imported, with "just under a third" of that coming from the US.

He says Russia used to be an important supplier to the UK before an export ban following its invasion of Ukraine.

Ukraine has been hitting Russian refineries recently as the war continues, which has also impacted supply.

Although the UK hasn't been buying from Russia, other countries have, meaning you have "more countries competing for less diesel", Williams says.

This means the UK is "very reliant" on American diesel, he adds.

US President Donald Trump has now said he is considering banning US exports of the fuel.

"It is not good news if there is anything like that… from Washington," Williams says.

We're about to hear from several live guests, including RAC head of policy Simon Williams.

We'll also be hearing from people impacted by higher diesel prices - including a farmer and haulage company.

You can follow along at the top of the page by tapping watch live - we'll also bring you the key lines here.

Lucie Fisher
Reporting from Newlyn

Fishermen say they could be forced out of business unless the government helps with fuel costs.

They want ministers to follow the EU's lead and provide support for an industry they say is "vital to UK food security".

Nathan Cock, a skipper of Our Rachael in Cornwall, tells the BBC it feels "as though the government did not want the fishing industry".

He says: "We've been asking repeatedly for help with fuel and we've had nothing, nothing whatsoever. It's not acceptable."

A spokesperson for the Department for Environment, Food and Rural Affairs says the government supports the industry through fuel tax relief and £360m from its Fishing and Coastal Growth Fund.

• Read more here on how fuel prices are affecting the fishing industry

I’m not a driver of a diesel car, why should I care?published at 11:17 BST

11:17 BST

Kevin Peachey
Cost of living correspondent

Millions of people in the UK do not drive a diesel car. Many do not drive at all.

But, if you are one of those people, it would be a mistake to think these record prices won’t affect you.

That’s because diesel is used heavily in agriculture and, crucially, in haulage.

So transporting some of our biggest essentials – particularly food – around the country is getting more expensive.

Add other energy cost pressures faced by manufacturers and retailers and you can see why there is a risk of the prices we pay in the shops going up if high diesel prices persist.

Previous episodes of high costs at the pumps have even had a knock-on effect on school transport and trips, putting pressure on councils and schools, particularly in rural areas.

More now from RAC head of policy Simon Williams, who says it's not just diesel prices that have been rising, but petrol prices too.

A litre of unleaded now costs 174.71p on average, "around 42p more than at the start of the [Iran] war".

This takes the typical cost of a full tank to £96, Williams says.

He adds that average petrol prices are "higher than we would expect - suggesting some retailers could be making an effort to keep diesel prices a little lower by balancing prices across the two fuels".

"This is a pump price threshold that no-one wanted to cross," says RAC head of policy Simon Williams.

It comes after the average price of a litre of diesel rose to a record 200.01p in figures released by the RAC this morning.

Diesel prices are "showing no signs of slowing, heaping more misery onto motorists," Williams says.

He adds: "The cost of filling up an average family car is now £110, almost £32 more than it was at the start of the US/Iran war."

"With electricity and gas bills also rising, household budgets will already be squeezed," Williams says.

"Drivers will be looking to the government to step in and ease the burden by lowering fuel duty further or reducing VAT in October's budget."

The average price of diesel has topped £2 a litre for the first time ever, the RAC says, as it publishes the latest diesel prices.

We'll bring you more on this shortly.

Image source, PA Media

Transport Minister Keir Mather says Britain’s supply of diesel is “robust” and “resilient” and the country has a wide range of sources.

He tells Sky News: “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.”

Mather adds: “Although prices have gone up at the pump, the government is aware of that and the freeze in fuel duty is still in place.

“People shouldn’t be concerned about shortages because of the inherent resilience that is built into that system.”

Image source, Getty Images

Former US energy secretary Dan Brouillette, who served during the first Trump administration, says a US export ban on diesel is unlikely to reduce prices long-term.

While it might temporarily push down US diesel prices, Brouillette tells Radio 4's Today programme that the US refines "more than we actually consume" which means "storage becomes an issue".

"When you reach that limit, what happens in the refining business is you begin to shut down the…refining production," he says. This means that, "over a period of time, prices will continue to rise again".

Brouillette goes on to explain other knock-on effects, saying that if one country leads with an export ban, "you can pretty well expect" others to follow suit.

Francisco Velasquez
Business reporter

Image source, Getty Images

For the US economy, a ban could deliver short-term relief at the pump by flooding the domestic market with excess supply.

However, energy analysts warn it could backfire.

David Fyfe, chief economist at Argus Media, notes that cutting off American supply would likely cause international prices to skyrocket.

That would push up global freight, food, and industrial costs, ultimately "feeding inflation back into the global economy".

"At a stroke, the US's reputation as a reliable supplier of energy to the world would be shot," Fyfe adds.

Removing more than a million barrels of daily American supply would trigger a fierce bidding war among importing nations in Latin America and Europe.

Sarah Raffoul, analytics manager at Argus Media, notes that while higher international prices would eventually curb demand, the immediate gap would severely strain trade relationships and accelerate global inflation.

• Read more from our business reporter here

James FitzGerald
North America reporter

Image source, Reuters

The American pressure on Europe over diesel supplies can be seen within the context of next month's US midterm elections, during which members of Congress will be elected.

The vote takes place on 3 November and could have a major impact on the rest of President Donald Trump’s time in the White House.

Ahead of the poll, the condition of the American economy is on the minds of many voters, as many of them have been struggling with the price of fuel, groceries, housing and healthcare.

Inflation in the US remains above the level targeted by the US Federal Reserve, partly due to the war that the US and Israel started with Iran in February.

Prices of petrol and diesel globally have skyrocketed since the war's outbreak - and Americans have not been insulated from the shock.

Diesel prices specifically hit a record high of more than $6.50 (£4.87) a gallon at one point last month, according to American Automobile Association data.

Members of Trump's Republican Party have been ramping up pressure on the president to curb diesel exports, believing this could ease the situation for American consumers whose votes they want to court.

Javier Blas, an energy columnist at Bloomberg, tells Radio 4's Today programme that American pressure has been "very intense".

"The US needed a quid pro quo and they created it," he says, in reference to President Donald Trump's suggestion that he is considering banning US diesel exports. The president may also ask European countries to release some of their reserves.

"Certainly there is scarcity" at the moment and it could get "much worse" if the US does enact an export ban, Blas says.

Asked how much of their reserves it would be "sensible" for European countries to release, Blas says he doesn't think Europe should release more than "one third".

Scarcity is not just due to the conflict in the Middle East, he says, adding that it has been "exacerbated" by the export ban on Russia and Ukrainian attacks on Russian refineries.

Releasing more than half of their reserves would leave European countries "very vulnerable" if global conflicts get worse over the coming months, Blas says.

Diesel prices hit an all-time high of 199.33p per litre earlier this week, the RAC motoring organisation announced, as the war in the Middle East continues to push up the cost of fuel.

The RAC said on Monday that diesel prices had entered "uncharted territory" and served as a reminder of "just how exposed the UK is to events occurring far away".

The cost of diesel rose by 59p a litre, or just under 40%, since the US-Israel conflict with Iran erupted at the end of February. The previous record was 199.09p in June 2022 following Russia's full-scale invasion of Ukraine.

The RAC will release updated figures later this morning, we'll bring you those as soon as we have them.

The UK is among European countries facing American pressure to release some of their diesel reserves, as the Iran war puts pressure on supply.

US President Donald Trump has threatened to restrict diesel exports, and US Treasury Secretary Scott Bessent argues that US farmers, truckers, and businesses "should not be left carrying the burden" as prices soar.

Over half of the UK's diesel is imported, with 31% of the imports coming from the US.

Diesel prices in the UK hit record highs this week and are hovering just under 200p per litre, according to motoring organisation the RAC - which will release updated figures later this morning.

European ministers have been meeting in Brussels to discuss the potential ban, with France proposing that European countries release 50 million barrels of diesel.

Stay with us as we bring you the latest developments.