Petrol and diesel drivers could be slapped with expensive fuel prices in the coming months following the UK's trade deal with the United States, experts have warned.
Earlier this month, Prime Minister Keir Starmer spoke to US President Donald Trump to unveil details of a highly anticipated trade deal which removed many controversial tariffs.
This included a landmark economic deal to reduce car export tariffs from 27.5 per cent to just 10 per cent, in a major victory for British manufacturers, especially luxury car brands like Jaguar Land Rover.
However, industry leaders are warning that the trade deal could lead to the UK being impacted by cheaper US imports of bioethanol, which is used to make the standard grade of unleaded petrol.
Do you have a story you'd like to share? Get in touch by emailingmotoring@gbnews.uk
Drivers are being warned that petrol and diesel prices could rise in the coming months
GETTY
E10 fuel was introduced as the new standard grade of petrol in September 2021, with the Government backing it as containing higher percentages of renewable ethanol, helping to slash its emissions output.
Estimates suggested that the introduction of E10 could cut CO2 emissions from transport by as much as 750,000 tonnes a year. This is equivalent to taking 350,000 cars off the road.
UK producers of bioethanol are warning that the trade deal with the US would have "dire consequences" since they will not be able to compete with American producers on price.
The trade deal outlined that the UK would offer a preferential duty-free tariff rate quota of 1.4 billion litres for US ethanol.
Speaking to The Sun, Tom Reid of the Renewable Transport Fuel Association, said: "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."
During the rollout of E10, the Government noted that the production of renewable ethanol for blending with fossil fuels also creates valuable by-products like animal feed and stored CO2.
Data from the Department for Environment, Food and Rural Affairs (DEFRA) outlines that the total volume of UK-sourced biofuels used in the UK in 2023 was 220.9 million litres, although this was a 37 per cent decrease compared to 2022.
Sir Keir Starmer praised the UK-US deal at the JLR factory earlier this month
PAThe warning from industry experts has prompted the Liberal Democrat trade spokesman Clive Jones to call for Government action.
He told The Sun: "This is a very worrying prediction for motorists who have already been clobbered by the cost of living crisis.
"The Government must publish a full impact assessment of its deal with Donald Trump, including any extra costs for motorists."
Despite this, the latest data from RAC Fuel Watch suggests that petrol, diesel and premium fuel prices should all "fall sharply".
LATEST DEVELOPMENTS:
Petrol and diesel prices are much cheaper at major supermarkets than at motorway service stations
PAAt present, one litre of unleaded fuel costs 132.75p, while diesel remains more expensive at 139.03p. Prices for both fuel types are more than 24p per litre more expensive at motorway service areas.
Drivers are consistently advised to visit one of the "big four" supermarkets as prices will generally be around three or four pence cheaper per litre.
