In effort to avoid panic at pumps, Keir Mather insists supply of fuel to Britain is ‘inherently resilient’

• UK diesel price hits record high of £2 a litre

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The government has sought to avert panic at the pumps, insisting that the UK is not facing a diesel shortage after Donald Trump threatened to cut off US supplies of the fuel.

The transport minister Keir Mather said on Friday that the UK has a wide range of sources of the fuel and is in talks with other European countries over the potential release of emergency diesel stockpiles.

Treasury sources concede ‘less room’ for manoeuvre as global bond sell-off also hikes government’s borrowing costs

• International bodies warn of rising debt and borrowing risks

• Burnham stands by claim UK is ‘in hock’ to bond markets

Oil prices lurched upwards again on Thursday, creating a growing headache for UK policymakers ahead of John Healey’s budget next month.

While Healey has been keen to present an upbeat picture of the UK’s economic prospects, Treasury sources concede the sharp jump in oil and gas prices means they have “less room” than a month ago.