UK drivers face soaring petrol prices thanks to Britain's new trade deal with the US, experts warn
MOTORISTS face soaring petrol prices thanks to Britain's new trade deal with the US, industry leaders and politicians warned today.
The deal, which scraps tariffs on American bioethanol, could cripple the UK's green fuel industry by flooding the market with cheap, subsidised US imports.
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Motorists face soaring petrol prices thanks to Britain's new trade deal with the US, industry leaders and politicians warned today.
Credit: PA
Bioethanol is a key component of E10 petrol.
UK producers now say they can't compete on price – and fear being priced out entirely.
If domestic production shuts down, Britain would be left at the mercy of foreign suppliers.
The move would pose a major risk, as seen in 2011 when a US drought dried up ethanol exports.
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A similar supply shock – whether from extreme weather, shipping chaos or rising US demand – could leave the UK scrambling to find fuel elsewhere.
Industry chiefs warned that if America's ethanol dries up again, the UK might have to turn to expensive Brazilian imports – or ditch the ethanol blend entirely.
Both options would see prices at the pump rocket or leave drivers more exposed to global oil markets.
Lib Dem trade spokesman Clive Jones slammed the government, saying: 'This is a very worrying prediction for motorists who have already been clobbered by the cost of living crisis.'
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He added: 'The government must publish a full impact assessment of its deal with Donald Trump, including any extra costs for motorists.'
Tom Reid of the Renewable Transport Fuel Association warned: 'Scrapping tariffs on bioethanol imported from the US will have dire consequences for the UK bioethanol industry, which will not be able to compete on price against the subsidised American product.
'If the UK
plants
were to shut down as a consequence of this, it leaves the UK open to fuel security problems in the
future
, if, for whatever reason, the US stops exporting bioethanol to the UK.
'But by then the damage will have been done, the UK plants will have been scrapped, and we will have to import the bioethanol from somewhere else, which could potentially be very expensive – and it will be UK motorists who end up paying for it.'
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