Fears diesel may be rationed after Russian invade Ukraine – ‘risk of energy rationing’

Fears diesel may be rationed after Russian invade Ukraine – ‘risk of energy rationing’

03/14/2022

Petrol prices: Haulage boss addresses supply concerns

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According to Downing Street figures from 2020, Russia accounts for 18 percent of diesel in the UK, five percent of jet fuel and one percent of gas oil like red diesel. Industry experts have warned that fuel may need to be rationed in response to the UK Government banning imports of Russian oil and gas.

According to the Daily Mail, some analysts have concluded there is a real risk diesel may have to be rationed, with 12 million diesel cars on the road although sales are on the decline. 

A spokesperson from the Energy Aspects consultancy, warned of how a decision could be made in the next few weeks.

They said: “Risks of energy rationing and ultimately a recession are growing by the day – something most policymakers seem to be ignoring or not grasping right now.

“If Russian oil is not integrated back into the market within the next few weeks, we are at a real risk of having to ration crude and products by the summer.”

By Friday, its assessment had become even more urgent, with the warning diesel rationing could begin as soon as April.

Earlier this week, Livia Gallarati, oil markets analyst at Energy Aspects told Reuters: “Sky-high energy prices for a prolonged period of time, risks of energy rationing, and ultimately a recession are growing by the day.”

Current RAC Fuel Watch data shows that unleaded petrol costs 161.06p per litre, while diesel has topped £1.70 a litre.

It is now less than two pence cheaper than super unleaded, with petrol, diesel and super unleaded all “likely to rise”. 

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In October and November last year, the UK saw a nationwide issue with the supply of petrol and diesel, with cars lined up outside filling stations.

Many at the time put this down to panic buying from desperate motorists.

At the time, people were filmed and pictured filling countless jerry cans worth of fuel.

The UK, USA and now Australia have all pledged to ban imports of Russian oil.

Russia is the world’s third-biggest oil producer behind the US and Saudi Arabia and ordinarily exports around five million barrels of crude oil per day, more than five percent of the global total.

In Ireland, the Government agreed to slash excise duty on petrol, with ministers announcing a 20 cent (17p) cut in tax on unleaded petrol.

A further tax cut of 15 cents (13p) was granted on diesel and two cents (1.7p) on agricultural diesel, with these changes expected to remain in place until the end of August.

The finance minister, Paschal Donohoe, said: “We are experiencing the consequences of a war.

“The Government is acting now, with this excise measure in response to price rises that we have seen today but also in anticipation of further rises that we do expect to see over the short to medium term.”

In his most recent AutoExpress column, motoring expert Mike Rutherford, suggested that a form of rationing could be a “wise plan”.

He said: “But when I say we need to use petrol, diesel and electricity far more efficiently, I’m not just talking about slowing down a bit to eke out a few extra miles.

“I’m thinking energy rationing might soon be a wise plan, making drivers of less thirsty cars the obvious beneficiaries over those who opted for models consuming excessive quantities of fuel or fuels.”

FELIX REEVES

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