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Released September 30, 2021 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Crippling fuel shortages in the U.K. over the past week were sparked by panic buying and a lack of heavy goods vehicle (HGV) truck drivers, leaving many of the country's petrol stations running on empty.
The U.K. has more than 8,000 filling stations that have been besieged by panicked motorists buying petrol and diesel in the past week. According to the representative body, Petrol Retailers Association, up to two-thirds of its members' 5,500 outlets were out of fuel with the remainder "partly dry and running out soon." BP, which has 1,200 filling stations, admitted fuel shortages at around one-third of its stations, blaming supply chain issues. The government and leading oil and gas companies have been trying to reassure the public that the issues have nothing to do with actual stocks of fuel at the terminals and refineries. The lack of qualified drivers, which is severely impacting fuel, food and retail sectors, has been blamed on the U.K.'s decision to leave the European Union (EU)--Brexit--and COVID-19.
"We are experiencing some fuel supply issues at some of our retail sites in the U.K. and unfortunately have therefore seen some sites temporarily close due to a lack of both unleaded and diesel grades," BP stated some days ago. "These have been caused by some delays in the supply chain which has been impacted by the industry-wide driver shortages across the U.K., and there are many actions being taken to address the issue. We continue to work with our haulier supplier to minimise any future disruption and to ensure efficient and effective deliveries to serve our customers. We are prioritising deliveries to sites with largest demand and seeking to minimise the duration of stock outs. We apologise for any inconvenience caused."
The U.K. government has been forced to put the army on standby to take over HGV driving duties as well as announcing the introduction of temporary visas for 5,000 fuel tanker and food lorry drivers to work in the U.K. in the run-up to Christmas.
Following an emergency meeting with senior executives from the fuel industry, U.K. Business Secretary Kwasi Kwarteng said, "We have long-standing contingency plans in place to work with industry so that fuel supplies can be maintained and deliveries can still be made in the event of a serious disruption. While there has always been and continues to be plenty of fuel at refineries and terminals, we are aware that there have been some issues with supply chains. This is why we will enact the Downstream Oil Protocol to ensure industry can share vital information and work together more effectively to ensure disruption is minimised."
In a joint statement from the major players in the fuel industry: "We will continue to work closely in partnership over this period with local and national Government and want to reassure the public that the issues that have arisen are due to temporary spikes in customer demand, not a national shortage of fuel."
Some of the measures agreed include an immediate increase in HGV testing, short-term visas for HGV drivers and new skills boot camps to train up to 3,000 more people to become HGV drivers. A survey of the U.K.'s Road Haulage Association (RHA) members estimates there is a shortage of more than 100,000 qualified drivers in the U.K.. The U.K. lost 16,000 drivers from European Union (EU) member states after Brexit came into force, with many returning to their home countries. A combination of travel restrictions, a weaker currency in the form of the U.K. pound versus the euro and higher tax penalties on E.U. drivers have been blamed.
The problem at the country's filling stations comes at a time when natural gas prices in Europe have reached record levels, forcing a number of power stations to shutter their operations. The crisis has led some of Europe's leading fertilizer producers to slash production at a number of key plants, including two in the U.K. For additional information, see September 23, 2021, article--Soaring Gas Prices Hit European Chemicals and Steel Sectors. This in turn has led to the U.K. meat industry warning of shortages in the coming weeks due to the lack of CO2--a byproduct of making fertilizers--which is used to stun animals before slaughter and in vacuum packing food products to extend their shelf life.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The U.K. has more than 8,000 filling stations that have been besieged by panicked motorists buying petrol and diesel in the past week. According to the representative body, Petrol Retailers Association, up to two-thirds of its members' 5,500 outlets were out of fuel with the remainder "partly dry and running out soon." BP, which has 1,200 filling stations, admitted fuel shortages at around one-third of its stations, blaming supply chain issues. The government and leading oil and gas companies have been trying to reassure the public that the issues have nothing to do with actual stocks of fuel at the terminals and refineries. The lack of qualified drivers, which is severely impacting fuel, food and retail sectors, has been blamed on the U.K.'s decision to leave the European Union (EU)--Brexit--and COVID-19.
"We are experiencing some fuel supply issues at some of our retail sites in the U.K. and unfortunately have therefore seen some sites temporarily close due to a lack of both unleaded and diesel grades," BP stated some days ago. "These have been caused by some delays in the supply chain which has been impacted by the industry-wide driver shortages across the U.K., and there are many actions being taken to address the issue. We continue to work with our haulier supplier to minimise any future disruption and to ensure efficient and effective deliveries to serve our customers. We are prioritising deliveries to sites with largest demand and seeking to minimise the duration of stock outs. We apologise for any inconvenience caused."
The U.K. government has been forced to put the army on standby to take over HGV driving duties as well as announcing the introduction of temporary visas for 5,000 fuel tanker and food lorry drivers to work in the U.K. in the run-up to Christmas.
Following an emergency meeting with senior executives from the fuel industry, U.K. Business Secretary Kwasi Kwarteng said, "We have long-standing contingency plans in place to work with industry so that fuel supplies can be maintained and deliveries can still be made in the event of a serious disruption. While there has always been and continues to be plenty of fuel at refineries and terminals, we are aware that there have been some issues with supply chains. This is why we will enact the Downstream Oil Protocol to ensure industry can share vital information and work together more effectively to ensure disruption is minimised."
In a joint statement from the major players in the fuel industry: "We will continue to work closely in partnership over this period with local and national Government and want to reassure the public that the issues that have arisen are due to temporary spikes in customer demand, not a national shortage of fuel."
Some of the measures agreed include an immediate increase in HGV testing, short-term visas for HGV drivers and new skills boot camps to train up to 3,000 more people to become HGV drivers. A survey of the U.K.'s Road Haulage Association (RHA) members estimates there is a shortage of more than 100,000 qualified drivers in the U.K.. The U.K. lost 16,000 drivers from European Union (EU) member states after Brexit came into force, with many returning to their home countries. A combination of travel restrictions, a weaker currency in the form of the U.K. pound versus the euro and higher tax penalties on E.U. drivers have been blamed.
The problem at the country's filling stations comes at a time when natural gas prices in Europe have reached record levels, forcing a number of power stations to shutter their operations. The crisis has led some of Europe's leading fertilizer producers to slash production at a number of key plants, including two in the U.K. For additional information, see September 23, 2021, article--Soaring Gas Prices Hit European Chemicals and Steel Sectors. This in turn has led to the U.K. meat industry warning of shortages in the coming weeks due to the lack of CO2--a byproduct of making fertilizers--which is used to stun animals before slaughter and in vacuum packing food products to extend their shelf life.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
