How it unfolded
As the conflict in the Middle East escalated, the UK began to feel the repercussions in its fuel supply chain. Just before the recent surge in fuel prices, petrol stations were already experiencing a spike in demand. On October 1, 2023, Asda issued a warning about temporary shortages at petrol pumps, citing high demand and supply issues stemming from geopolitical tensions.
By the following week, petrol prices in the UK had risen above 150p a litre for the first time since May 2024, reaching an average of 150.11p. This price increase was not isolated; diesel prices also surged, with the average cost reaching 177.68p a litre. The situation was exacerbated by reports of petrol stations in Scotland running out of fuel, leading to closures and significant inconvenience for drivers.
On October 5, 2023, drivers in areas like Dundee and Fife reported shortages, with several petrol stations completely out of fuel. The average price of diesel at UK forecourts hit 184.2p, marking a staggering 29% increase since the conflict began on February 28. Meanwhile, average petrol prices climbed to 153.7p per litre, reflecting a 16% rise over the same period.
Allan Leighton, a spokesperson for Asda, noted, “Our fuel volumes are up quite significantly and clearly demand has been outstripping supply. Supply is tight and we are all trying hard on that.” This sentiment was echoed by a spokesperson from Fuels Industry UK, who stated that the supply of petrol and diesel in the UK was stable, despite the visible shortages at some stations.
As the situation continues to evolve, the RAC has advised drivers to plan their refueling carefully, especially those embarking on long journeys. Simon Williams from the RAC remarked, “Drivers on long journeys will need to plan very carefully where they refuel.” This advice comes as many drivers are left scrambling to find available fuel, with some stations unable to meet the heightened demand.
The implications of these fuel shortages extend beyond mere inconvenience. The cost of filling the average family car with diesel has exceeded £100 for the first time in over three years, placing additional financial strain on households already grappling with rising living costs. The combination of high prices and limited availability raises concerns about the long-term stability of fuel supplies in the UK.
As of now, the situation remains fluid, with petrol stations working to replenish their supplies as quickly as possible. However, the ongoing geopolitical tensions and their impact on fuel prices suggest that this crisis may not be resolved in the immediate future. Drivers and industry stakeholders alike are left to navigate this challenging landscape, hoping for a return to more stable conditions.