What measures is the UK government taking in response to the potential fuel shortage? The UK government is reviewing emergency petrol and diesel rationing plans under the Energy Act 1976 to prepare for potential supply crises.

The UK already has an emergency framework in place for fuel shortages, which was last updated in 2024. If activated, these rationing plans could include a £30 fuel purchase limit and priority access for essential services like the NHS and police.

The Department for Energy Security and Net Zero (DESNZ) manages the UK’s emergency fuel strategies. The government has confirmed it is reviewing its national fuel emergency plans, designed to protect essential services in the event of a major petrol or diesel shortage.

Energy experts predict a shortage of diesel could hit the UK in late April. Shell’s chief executive has warned that Europe could face energy shortages and fuel rationing as early as next month if the Strait of Hormuz remains closed.

In a recent statement, a spokesman for the Prime Minister emphasized, “We will always plan for all eventualities.” The government has reassured the public that the UK is well prepared for any disruption, urging motorists to fill up as normal.

“There’s no reason to panic. The government has emphasised that this is a contingency measure, not an alert of impending shortages,” a government source stated.

Slovenia has already become the first EU country to start rationing fuel due to supply chain disruptions, highlighting the seriousness of the situation in Europe.

Nick Butler, an energy expert, noted, “The government has to protect the key sectors of the economy – food supply, health service, schools and so on.” The UK’s fuel supply network is robust, and these plans are being reviewed as a sensible precaution.

Details remain unconfirmed regarding the exact timing and extent of potential fuel shortages in the UK, as well as the impact of the ongoing conflict in Iran on UK fuel supplies. The government has not confirmed any immediate shortages.

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The Trump administration is preparing to issue a temporary suspension of the Jones Act, which mandates that goods shipped between two U.S. ports must be transported on American-built, owned, flagged, and crewed vessels. This potential waiver comes as U.S. gasoline prices have surged to $3.60 per gallon, the highest level since May 2024, and diesel prices have risen to $4.89 per gallon, the highest since late 2022.

The proposed waivers, which would last for 30 days, aim to allow foreign tankers to supply refiners on the U.S. East Coast with fuel from the Gulf Coast. This move is seen as a response to the escalating conflict with Iran and the need to mitigate the impact on fuel prices.

Historical Context and Previous Waivers

The Jones Act has historically been suspended only during significant national emergencies, such as hurricanes or severe supply disruptions. The last waiver was issued in October 2022 for a tanker supplying Puerto Rico after Hurricane Fiona. Additionally, the Biden administration temporarily eased the law in 2021 for refiner Valero Energy following a cyberattack.

White House spokesperson Katherine Leavit noted, “The administration is considering waiving the Jones Act for a period, though she noted the action had not been finalized.” This indicates that while discussions are underway, details remain unconfirmed.

Economic Implications

With gasoline prices on the rise, the waiver could potentially slow price increases by roughly five to ten cents per gallon. The current situation is exacerbated by the shrinking number of qualifying ocean-going vessels under the Jones Act, which has decreased from 193 to just 92.

The policy has strong backing as a national security measure, designed to support the domestic shipbuilding industry and maintain a U.S. merchant fleet. However, any suspension of the Jones Act is politically sensitive due to the strong support it commands from maritime unions.

The administration’s consideration of this waiver reflects the urgent need to address rising fuel prices and ensure a stable supply amidst ongoing geopolitical tensions. As discussions continue, the implications for both the economy and national security remain a focal point of concern.

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Fuel prices in the UK have seen notable increases, with petrol currently priced at 137.51p per litre and diesel nearing £1.51 per litre. This surge follows a peak in Brent Crude Oil prices, which have reached around $120 (£89).

Government Response

In response to rising fuel costs, Chancellor Rachel Reeves announced an extension of the 5p per litre cut in fuel duty for an additional five months. Reeves emphasized, “In November, I extended the 5p per litre cut in fuel duty for a further five months and ensured that fuel duty will not increase in line with inflation this year.”

Market Vigilance

The Competition and Markets Authority has been instructed to remain vigilant regarding fuel prices as they continue to fluctuate. Experts are advocating for further cuts in fuel duty to alleviate the financial burden on motorists.

Fuel prices have been particularly volatile since the aftermath of the Russian invasion of Ukraine in 2022, when petrol and diesel prices peaked across the UK. The current situation is reminiscent of those turbulent times, as prices are again on the rise.

Gas Price Increases

Additionally, gas prices have surged from 78p/therm to 161p/therm within a week, raising concerns among consumers and industry experts alike. Simon Cran-McGreehin noted, “Although gas prices are a long way off the record highs seen following Russia’s invasion of Ukraine, the rates of current increases is worrying.”

As the situation develops, observers will be closely monitoring the impact of these rising fuel prices on the economy and consumer behavior. Details remain unconfirmed regarding any potential further interventions from the government or changes in market dynamics.

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