Fuel retailers are preparing for a surge in demand as motorists return from their Easter getaways this weekend, with warnings of potential “temporary shortages” at gas stations. Over the holiday weekend, millions of drivers traveled, leading to expectations of increased fuel purchases before and after their trips. Concerns about supply disruptions due to the Middle East crisis have prompted drivers to stock up, potentially causing temporary shortages in some areas until new fuel deliveries arrive.
Approximately one-fifth of the world’s oil and liquefied natural gas supplies are reportedly affected by the situation in the Gulf, where Iran’s actions in the Strait of Hormuz have led to increased oil prices. Currently, oil prices have risen to $109 per barrel from $77 a month ago, and gas prices have surged by about 75%. Energy suppliers are cautioning that gas and electricity costs could climb significantly by summer if the crisis persists. Diesel prices have hit an average of 185.2p per liter, with petrol at 154.4p, according to the RAC, which anticipates further price hikes.
While the UK is not expected to face diesel shortages, there may be a decrease in supplies by more than 10% by mid-month. The Department for Energy Security and Net Zero reassured that petrol stations are well supplied, emphasizing the country’s diverse and robust fuel supply system.
In response to the escalating situation, business leaders are urging the government to halt planned fuel duty increases. Dale Vince, a Labour donor, called on Energy Secretary Ed Miliband to prevent fuel exports if domestic shortages become a risk. Criticizing the UK’s dependence on fossil fuel imports, Vince highlighted the need for protective measures to secure fuel supplies, such as restricting North Sea exports.
Recent reports have revealed that energy executives have seen substantial gains in their fortunes since the onset of the Middle East crisis. The value of holdings for top industry figures has surged, with some individuals experiencing multimillion-pound increases in wealth. Energy producers’ shares have soared due to the conflict in the Gulf region, leading to significant boosts in executives’ share values.
Despite the wealth accumulation among energy industry leaders, ordinary consumers are feeling the financial strain, with record-high fuel prices attributed to geopolitical tensions. While some executives have profited from the crisis, the general public is grappling with inflated costs at the pump. Centrica, Shell, Harbour, and BP declined to comment on the matter.
