Former Government adviser Professor Nick Butler has warned the price of diesel could rise above £2 per litre by May when the ‘real crisis’ and fuel shortage hits the UK and Europe
Keir Starmer should urge people to work from home to tackle energy shortages following the war in Iran, a former Government adviser has suggested.
Professor Nick Butler, previously vice-president for strategy and policy at oil giant BP, warned the ‘worst was yet to come’ with soaring fuel prices. He forecast that diesel costs could still climb a “good deal” beyond £2 per litre by May when the ‘real crisis’ and fuel shortage strikes the UK and Europe.
He added that it would be “perfectly sensible” for Starmer and his ministers to direct workers to stay at home to preserve fuel. Prof Butler’s comments come as US-Israeli military action in Iran since February has witnessed oil prices rocket to record highs, with costs up more than 60% so far this year as the blockade of the vital shipping route Strait of Hormuz persists.
“Some countries, I think particularly in Asia where the crisis has hit earliest, they’re taking an extra day a week at home,” he told Times Radio.
“People are being encouraged to work at home. And I think you have to test now whether there’s a willingness.
“And as I read the behavioural science, people do respond. They don’t all do it perfectly, but they respond if other people are responding.”
When asked whether the Government should issue recommendations to work from home, Prof Butler said: “Yes, I think that that would be a perfectly sensible measure.” Prof Butler, who acted as adviser to Gordon Brown throughout his time as prime minister, also cautioned that diesel prices could soar even further, warning that the worst remains ahead.
He stated: “The real crisis for Britain and for Europe will come at the end of April and in early May, when the real shortage will translate into both a physical shortage and a sharp rise in prices. I don’t think we’ve yet seen the full impact on prices of this loss of supply.”
When questioned whether diesel prices might exceed £2 per litre, he replied: “It could go a good deal north of that. The jet fuel prices doubled, and I think that could go further north as well.
“I think there’s been a degree of complacency and a belief that Mr (Donald) Trump would always come back into line and there would be a deal, and then everything would be OK.”
Donald Trump once again lashed out at the UK Prime Minister’s ‘tragic mistakes’ today. Earlier the US President also insisted the conflict with Iran was ‘close to over’.
But Rachel Reeves condemned Mr Trump over the economic consequences of the Iran conflict – branding it a “folly” to lack any clear exit strategy. Speaking to The Mirror, the Chancellor described herself as “very frustrated and angry” at America’s actions as households across Britain face the repercussions.
Leading think-tank the Resolution Foundation has issued a warning that the average UK household could find themselves £480 worse off over the current financial year than if the conflict hadn’t occurred. Ms Reeves stated she didn’t recognise this figure – but assured that the government will maintain a “close eye” on gas and electricity prices.
She declared: “This is a war that we did not start. It was a war that we did not want. I feel very frustrated and angry that the US went into this war without a clear exit plan, without a clear idea of what they were trying to achieve.”
When questioned further about her frustration with the US, she elaborated: “Because of the impact it’s having on families and businesses in our country. When I presented the Spring Statement at the beginning of March, it showed that inflation was coming down, interest rates were projected to fall further after having been cut six times since I became Chancellor of the Exchequer, reports the Mirror.
“Borrowing and debt were falling and the economy was set to grow. It was already the fastest growing G7 economy in Europe last year, and that was projected to continue.”
Ms Reeves continued: “Obviously no sensible person is a supporter of the Iranian regime, but to start a conflict without being clear what the objectives are and not being clear about how you are going to get out of it, I do think that is a folly and it is one that is affecting families here in the UK but also families in the US and around the world.
“I don’t think it was the right decision. But it was absolutely the right decision for Keir Starmer – our Prime Minister – to keep us out of this conflict.”
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