Keir Starmer is to meet with the heads of major oil companies as concerns grow that the Iranian conflict will soon bring about a shortage of fuel in the UK.
Supplies of jet fuel and diesel are said to be most at risk of not meeting demand, with the latter a significant concern given the UK is heavily reliant on road haulage, which moves around 90% of UK goods and runs almost exclusively on the fuel. And, while the UK refines enough unleaded to meet domestic demand, the country is a net importer of diesel.
The UK is expected to experience a 10% diesel shortfall by mid-April, while Education Secretary Bridget Phillipson confirmed on Sunday that the government has been drawing up contingency plans for shortages, although she said added that this was precautionary and drivers should “carry on as things are”.
In light of this, the Prime Minister is to meet with the heads of BP and Shell, and Norwegian energy firm Equinor, according to The Times. The paper also reports that Chancellor Rachel Reeves is meeting with her counterparts from other G7 nations (Canada, France, Germany, Italy, Japan, US) over concerns that bans by China and Russia on exports of refined fuel are putting added pressure on global supplies.
Late last week Asda’s executive chair, Allan Leighton, cautioned that ”supply is tight”, and ”demand has been outstripping supply”, adding that “the odd pump” at some of the retailer’s forecourts could be out of action if drivers arrive ahead of tanker deliveries – though the Petrol Retailers Association said fuel is ”flowing normally and there is no need for any change in usual buying habits”.
Whitehall is publicly saying there is no danger of the UK running out of fuel and ministers continue to urge drivers to fill up as normal, but the closure – be it partial or full – of the Strait of Hormuz, through which a fifth of the world’s fuel transits, has had a significant impact on global supplies. Oil prices continue to experience significant volatility, with a barrel of Brent Crude standing at $116 at time of writing, roughly double what it was before the conflict began.
The US is thought to be considering deploying ground troops reopen the Strait of Hormuz, although President Trump said over the weekend that Iran had agreed to allow more cargo ships through the sea passage.
