Fuel retailers are preparing for a surge in demand from motorists returning from their Easter getaways this weekend. There are concerns that drivers may experience temporary fuel shortages due to the ongoing Middle East crisis impacting supply chains. The Mirror was informed that a significant number of drivers are expected to refuel both before and after their travels, potentially leading to short-term supply disruptions in certain areas.
Approximately one-fifth of the global oil and liquefied natural gas reserves are reportedly stuck in the Gulf region following Iran’s actions at the Strait of Hormuz, resulting in escalating prices. Oil prices have risen to $109 per barrel from $77 in the previous month, and gas prices have surged by about 75%. Energy experts are warning that gas and electricity expenses could soar by £288 to £1,929 annually by summer if the conflict persists. Diesel prices have already reached an average of 185.2p per liter, with petrol at 154.4p, prompting the RAC to forecast further price hikes.
Despite the challenges, the UK is not anticipated to face a complete diesel shortage, although supplies may decrease by over 10% by mid-month. The Department for Energy Security and Net Zero assured that petrol stations are well supplied and have diverse and resilient sources of fuel.
Meanwhile, industry leaders are urging the government to halt planned fuel duty increases. Dale Vince, a prominent Labour donor, is calling on Energy Secretary Ed Miliband to prohibit fuel exports to avert potential shortages in the UK. Vince criticized the country’s reliance on fossil fuel imports and blamed global economic interdependence for exacerbating the energy crisis.
In a related development, the Mirror disclosed that top energy executives have seen substantial increases in their fortunes since the onset of the Middle East conflict. The value of shares held by key industry figures has collectively surged by £66 million since late February, with some executives witnessing multimillion-pound gains. The spike in energy producers’ shares is attributed to the ongoing war and disruptions in the Gulf region.
Notably, the wealth growth of energy executives contrasts starkly with the financial burden on ordinary consumers facing soaring fuel prices due to geopolitical tensions. While the mentioned industry leaders have reaped significant financial benefits, the public has been grappling with unprecedented price spikes at the fuel pumps. Queries to Centrica, Shell, Harbour, and BP regarding the situation went unanswered.
