UK on excessive alert as gasoline rationing fears triggered and petrol costs spiral over Iran warfare chaos
Long-lasting measures are being considered to tackle the energy crisis, including fuel rationing, as the war with Iran continues to rage on in the Middle East
A warning of potential fuel rationing has been issued(Image: PA)
A warning of potential fuel rationing has been issued as a key energy official outlined the measures that could be implemented as the conflict with Iran deepens the global crisis. The European Union is currently exploring “all possibilities” as it braces for a “long-lasting” energy impact from Iran blocking a significant portion of the global supply, according to the bloc’s energy commissioner.
Prices for all forms of fuel, including petrol, diesel and jet fuel, have surged since the beginning of the Middle East war, but the EU’s Dan Jorgensen revealed when the situation could start to worsen further.
Jorgensen said: “This will be a long crisis . . . energy prices will be higher for a very long time.” He added that “we expect it to be even worse in the weeks to come”.
Despite the UK no longer being part of the EU, the message and future actions from our neighbours could potentially have knock-on effects on the many industries that heavily rely on fuel.
In an interview with the Financial Times, Jorgensen said the fuel situation was rapidly deteriorating and said that the bloc was considering plans to manage the crisis.
The official mentioned these possibilities included fuel rationing and also releasing more oil from the EU’s emergency reserves.
Jorgensen also cautioned that the current crisis could persist for a long time, saying: “It certainly is our analysis that this will be a prolonged situation and countries need to be sure that they…have what they need.”
He added that the EU was not currently facing a fuel supply crisis, but Brussels was preparing for “structural, long-lasting effects” that could impact the bloc due to the ongoing conflict in the Middle East. He said: “I mean, better to be prepared than to be sorry.”
In retaliation against US and Israeli strikes, Iran has launched drone attacks on neighbouring countries and effectively blocked the Strait of Hormuz.
Typically, around 20 per cent of the world’s oil and liquefied natural gas pass through this narrow waterway.
Iran has bombed and destroyed some tankers in the waterway, instilling fear in captains, companies and insurers, causing them to keep their vital vessels out of the Strait of Hormuz.
The disruption to the crucial global shipping lane has sent prices soaring amid lower supply. For instance, the price of a barrel of oil surged past $109 on Thursday, a significant increase from the pre-war price of around $70 per barrel.
Petrol and diesel prices have also noticeably increased at the pumps for Brits. Unleaded has risen by around 22p a litre since the conflict began, to an average of 154.45p. The price of diesel has increased more dramatically, by 43p a litre to an average of 185.23p.
The Prime Minister was questioned on whether people should alter their behaviour in light of the ongoing global crisis.
Keir Starmer revealed that the government had convened a COBRA meeting to assess the “looking at the ongoing impact here in Britain” and added “that is being monitored daily”.
The UK has also advocated for an end to the Strait of Hormuz blockade, with Yvette Cooper accusing the Iranian regime of trying to hold the global economy to ransom.
In a meeting with allies, several strategies were discussed including imposing “sanctions to bear down on Iran” if the waterway does not reopen soon.
Keir Starmer’s cost-of-living advisor has also suggested the government should contemplate scrapping the planned fuel duty increase for September.
Lord Richard Walker, the executive chairman of Iceland, told BBC Radio 4’s Today programme: “The 5p fuel duty cut that you allude to is an interesting one. That’s going to expire in September.
“I think given where we are, we do need to be thinking and talking about extending it or enlarging it. Interestingly, the Australian government, I was reading, have recently taken 14p per litre cut to their fuel tax. I mean that this cut is 5p.”
Last month, the crisis led the International Energy Agency (IEA) to call on people to take “immediate actions to reduce demand” – including driving more slowly.
The IEA published a list of ten suggestions for governments, businesses and households, which could be implemented to “alleviate the economic impacts on consumers of the disruptions to oil markets stemming from the war in the Middle East”.
The guidelines include working from home “where possible”, promoting public over private travel and avoiding air travel “where alternative options exist”, along with “higher car occupancy and eco-driving” – driving at a slower speed – to “lower fuel consumption quickly”.
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