Contingency plans to prepare for possible oil shortages caused by the war in Iran could see fuel rationed & supplies for critical sectors like health prioritised. Downing Street insisted on Monday that petrol stations across the UK remain well-stocked. Britain’s diverse fuel supplies are resilient to the ongoing global instability as Iran continues to blockade the Strait of Hormuz through which a fifth of the world’s oil travels. But as the Prime Minister met industry leaders to discuss the challenges posed by the conflict in Iran No 10 said the Government was planning for all eventualities.
Sir Keir Starmer said on Monday there was no need for drivers to do anything other than what is normal despite reports that petrol rationing is being considered in other European nations. Ministers may need to prioritise essential industries if the supply of diesel and jet fuel gets badly squeezed according to energy experts who spoke to The i Paper. Ministers were also urged to set out the UK’s contingency plan to reassure people. Ashley Kelty is an energy analyst at investment bank Panmure Liberum.
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He said petrol supply should remain steady but warned that it looked as if diesel shortages may start to hit the UK in late April. A shortage of diesel is coming he told The i Paper. The Government has been coy because it doesn’t want to trigger panic buying. But the situation is definitely quite perilous. Ellen Fraser is an energy expert at the consultancy Baringa. She said it appeared that major oil companies thought a squeeze in diesel would hit the UK within a month. The energy analyst said it was worth considering sensible measures such as encouraging people to work from home and cancelling some domestic flights.
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Richard Smith of the Road Haulage Association said the Government needed a clear plan to keep goods moving across the UK. Colin Smith of the Scottish Wholesale Association said food and drink distributors must be included in any priority access. Arjan Geveke from the Energy Intensive Users Group which represents UK manufacturers said there was a risk that factories would have to cut production in the coming weeks due to rising energy costs. The Department for Energy Security and Net Zero said it was not looking to enact any emergency responses beyond a coordinated release of oil stocks that happened earlier in April to prevent disruption to global supplies.
Asked about preparations for fuel shortages the Prime Minister’s official spokesman said we will always plan for all eventualities. But he stressed that petrol stations are well-stocked nationally and any suggestion otherwise is incorrect. Officials are keen to minimise any risk of panic buying of fuel. Adam Bell is a former government adviser & a partner at the consultancy firm Stonehaven. He suggested volume measures or rationing may be needed. I think it’s probably likely that if the war continues then by the middle of the month the Prime Minister will start saying some volume measures might be appropriate he told Times Radio. The UK already has an emergency framework in the event of fuel running low which was last updated in 2024.
It sets out what would happen in the event of a severe national fuel supply shortage including plans to prioritise emergency service vehicles such as ambulances whilst limiting the amount of fuel ordinary customers can buy. Oil and fuel distributors could also be ordered to prioritise the delivery to critical service industries such as food & utilities and public transport as well as healthcare. Fuel could also be sold only during specific hours and speed limits could be lowered to reduce consumption.
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The International Energy Agency is a global body responsible for overseeing energy supplies & security. It previously recommended several measures to reduce fuel demand including encouraging the use of public transport or working from home as well as reducing speed limits. Some countries already facing fuel shortages have begun implementing such policies but UK Government sources said it is not currently facing the same risk.
The Government also has the power to enact measures to ensure the fuel supply is protected and to stave off possible shortages. A reserve fleet of fuel tankers can be deployed at short notice to provide additional capacity and the Armed Forces could also assist with fuel deliveries. Emergency oil stocks which the UK is obliged to hold can be released to provide additional supply.
A coordinated release of some of these took place in early April alongside IEA partners. Speaking to representatives from firms including Shell & BP & shipping giant Maersk and banks on Monday Starmer said a joint business and Government effort was needed to protect Britons from rising energy and petrol prices.The Government cannot handle this alone. You cannot handle it alone either. We are going to need to work together on this he told the executives.
