Business Wednesday, Mar 18

Existing plans allow for extreme measures to be taken if petrol stocks run low, but government insists there is no prospect of shortages for now

Plans allow for lower speed limits and petrol rationing to be imposed to cope with any fuel shortage. The measures would also potentially see fuel prioritised for the emergency services as measures that could help supplies running out.

The plans have been in place since 2022 but have been put into sharp focus by the Middle East conflict.

It came as a top expert warned this week that the government could be forced to ration energy if the Iran war drags on. A virtual blockade of the Strait of Hormuz has crippled exports of oil from the Gulf.

Nick Butler, ex-head of strategy at BP and a former advisor to Labour PM Gordon Brown, warned: “There will be a real, physical shortage of supply in a few weeks’ time.

“How long that goes on we don’t know, but I think the government here must now be preparing for a significant shortfall of supply over the next two months.

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“I think it does mean a form of rationing. I think we learnt from the tanker drivers dispute in 2000 that oil and gas supplies are absolutely crucial to the running of the economy and you can’t bring on new supplies quickly.”

The National Emergency Plan for Fuel, which is available on the gov.uk website, reportedly includes limiting speeds to 50mph on all roads.

The government insisted, while the plans existed, they were there only for emergencies. It said petrol stations in the UK were well-stocked.

A spokesperson also pointed out that, last year, around 90% of the crude oil refined in the UK was imported, and only around 1% of that imported crude came from the Middle East.

Most is sourced from countries such as the United States, and Norway, supplemented by smaller volumes from other producers. The AA and others have been keen to stress that drivers should fill up as normal.

Meanwhile, the RAC has revealed how pump prices continue to rise. Unleaded has risen to an average of 142.62p a litre, while diesel up to 162.66p.

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