Overview

• The UK-US Prosperity Deal removes tariffs on American bioethanol, a key component of E10 petrol, sparking fears of market disruption by cheaper, subsidized US imports.
• UK bioethanol producers caution that they may be unable to compete, risking plant closures and job losses across the domestic sector.
• Industry leaders warn that reliance on foreign bioethanol could expose the UK to fuel security risks and possible price hikes in the event of supply disruptions or global market shifts.
• The government asserts that the trade deal will benefit the economy, safeguard jobs, and not lead to increased petrol prices, despite industry and opposition concerns.
• The RAC notes that current petrol prices are higher than expected, but there is no consensus on whether the trade deal will directly impact fuel costs.