With no end in sight for the Middle East conflict, families risk some summer food shortages as a top official said Europe has “maybe six weeks of jet fuel left”
Households were advised to consider stocking up on certain goods as the Iran war chaos threatened to hit holiday flights within weeks.
As the Middle East conflict drags on, the energy shock it has unleashed continues to cause economic turmoil that is being felt by ordinary households.
The threat of worse came as the government drew up emergency plans for a “reasonable worst-case scenario” where the ongoing closure of the Strait of Hormuz leads to a shortage of carbon dioxide.
Reports say, were stocks to run low, healthcare and civil nuclear energy would be prioritised given CO2 is needed to cool blood supplies, organs and vaccines, as well as for electricity supply. But it raises the prospect of other sectors being left without, with farming, food and drink manufacturers and hospitality among potentially at risk.
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CO2 is used to increase the shelf life of food such as salad, packaged meats and baked goods, and is also critical in the process of slaughtering nearly all pigs and more than two thirds of chickens. The gas is also used to make drinks fizzy – and to dispense drinks in pubs – with the threat that any disruption could impact beer drinkers cheering on England and Scotland in the World Cup that kicks off in early June. It is also to used to promote the growth of plants – such as cucumbers – in greenhouses.
Rather than critical food shortages, officials think there could be a lack of variety in shops.
CO2 is a by-product of fertiliser, shipments of which have been badly hit by the near blockage of the Strait of Hormuz. The lack of fertiliser has also led to separate warnings from farmers about soaring costs which could prevent them growing new crops, and potentially higher prices.
The boss of Tesco confirmed the supermarket giant was in contact with the government.
Ken Murphy said: “We are in constant contact with the government at various levels to assist in any scenario planning that might be required.” However, in a bid to reassure shoppers, he added: “We have no issues in our supply chain at this point and so far no flagged concerns from any of our suppliers.”
Mr Murphy said there was also no evidence of the Middle East conflict pushing up food inflation.
Business Secretary Peter Kyle insisted the public should be “reassured” the government was making contingency plans.
He told Times Radio the government did not comment on leaks, but he added: “It is difficult for me, because, of course, these leaks are very unhelpful. But when people do read it, they need to be reassured that we are doing this kind of planning, and we are doing this kind of scenario planning.”
Mr Kyle pointed to his own decision near the start of the conflict to reverse the mothballing of the Ensus bio-ethanol plant in Teesside to secure supplies of carbon dioxide.
He added: “People should be reassured that we are doing this kind of action behind the scenes to keep resilience in our economy, so that when the full extent of what may or may not emerge, because this situation is still unfolding in the Middle East, you have a Government that is acting with creativity and boldness.” He later insisted supplies of carbon dioxide are “not a concern” for the UK.
However, a Labour peer said households should be better prepared for a crisis, whether this or any in the future.
Lord Toby Harris, Chair at National Preparedness Commission, an independent body that encourages readiness to avoid and respond to major shocks, said: “The reality is that these are pressures that will become more and more intense if this particular crisis goes on.
“We all have to prepare for the unexpected and the likelihood is that shocks of this sort are going to become more common, more frequent in the future.
“What you don’t want is people rushing to the stores panic buying, stripping the shelves, which means those who are fractionally slower are going to miss out.
“But other countries provide household advice which says, think about what you would need to sustain your household for two days, three days, maybe even a week and encouraging people – not everyone will be able to do it, some people haven’t got the money – what would you put aside and what’s a sensible thing to put aside.”
Lord Harris told BBC Radio 4’s World at One: “Every household which is better prepared, that is one less household the government has to worry about.
“The absolute minimum are to ensure you have a working torch, make sure you have a fully stocked first aid box, perhaps a wind-up radio, and of course some tinned food, some staples and so on.”
It came as the head of the International Energy Agency said Europe has “maybe six weeks or so (of) jet fuel left”, warning of possible flight cancellations “soon” if oil supplies remain blocked by the Iran war.
IEA executive director Fatih Birol painted a sobering picture of the global repercussions of what he called “the largest energy crisis we have ever faced,” stemming from the pinch-off of oil, gas and other vital supplies through the Strait of Hormuz.
“In the past there was a group called `Dire Straits.’ It’s a dire strait now, and it is going to have major implications for the global economy. And the longer it goes, the worse it will be for the economic growth and inflation around the world,” he said.
Kenton Jarvis, boss of budget airline easyJet, insisted it was not expecting jet fuel shortages. However, he did warn a surge in fuel prices risked possible summer fare increases. “If fuel remains high for longer then that will feed into the whole industry in terms of prices,” said Mr Jarvis.
EasyJet was left nursing an additional £25million bill for fuel in March, despite having guaranteed the price of nearly 80% of its needs in advance.
It came as the Luton-based carrier warned its half-year loss was likely to balloon to between £540 million and £560 million, up sharply from a £394million loss a year ago. The increase was further worsened by a £30 million provision for legal costs, although it does not reveal anymore detail.
