DRIVERS across the country are seeing some petrol pumps closed, but retailers are saying there are no issues, so what is going on with the fuel supply in Scotland?
The UK is reportedly facing a fuel shortage after Iran blocked oil tankers from using the key shipping channel following strikes from the United States and Israel last month.
Oil prices, which have a significant effect on the cost of wholesale fuel as its raw ingredient for producing both petrol and diesel, have soared in response to Iran’s stranglehold on tankers passing through the Strait of Hormuz.
A fifth of the world’s traded oil passes through the Strait in peacetime, and Tehran’s stranglehold, with its strikes on energy infrastructure in the region, has had far-reaching consequences for the global economy.
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Even if the Strait were to reopen quickly, some effects like higher food prices could persist for months or longer.
The effects of the conflict in the Gulf are starting to be felt by those across the UK, with some Scottish motorists finding their local supermarket pumps closed, stating they are out of fuel.
Despite the closures, some of the UK’s biggest retailers like Tesco and Sainsbury's have insisted there is no shortage and that they have “good availability” of all fuel grades, along with regular deliveries to all stores.
In a statement to The National Fuels Industry, UK echoed some of the supermarkets, stating that fuel supplies to the UK “remain stable”.
“Companies are monitoring the fuel supply situation closely and reporting regularly to the energy department on the status now and for the weeks ahead,” a spokesperson said.
“Supply remains stable in the UK and our members are working hard to ensure that remains the case.”
However, there have been reports that pumps are running dry, especially in rural locations, across Scotland, with some places like Costco in Glasgow seeing dozens of drivers queuing as they appear to be panic buying.
Although there isn't any nationwide shortage of petrol or diesel, it is understood that there are challenges with some retailers with deliveries.
It comes a year after Scotland’s only oil refinery in Grangemouth closed its doors for good, leading to 400 people losing their jobs.
The Grangemouth refinery not only produced 97% of Scotland’s aviation fuel, but the UK lost 20% of its overall fuel production when it closed, according to Fuels Industry UK.
With growing concerns, Scotland’s First Minister John Swinney chaired a meeting in the government’s Resilience Room to address the consequences of the war in the Middle East on businesses and households.
“The impact of the ongoing conflict in the Middle East on people and businesses in Scotland is becoming more significant by the day,” Swinney said.
“As concerns continue to grow across our communities and sectors, I convened SGoRR to assess the situation in detail and to consider what further engagement, support, or actions may be required from the Scottish Government, our partners and others in the days and weeks ahead.”
It comes after the motoring research charity, the RAC Foundation, estimated that rises in pump prices have led to motorists paying an additional £583 million for petrol and diesel.
Average diesel prices are also up 40p a litre since the conflict began, while petrol has gone up 20p.
Energy bills are forecast to rise by almost £300 from July, with the Financial Times reporting that the UK is set to receive its last tanker of jet fuel from the Middle East this week.
The energy chief for the European Commission has also urged people to work from home, drive, and fly less, as they warned of a prolonged energy crisis.
Dan Jorgensen warned that Europe is facing a “very serious situation” with a fuel shortage and another cost-of-living crisis looming due to no end in sight for the conflict in the Gulf.
Although the UK has not implemented any fuel-saving measures, a raft of countries across the globe have already started introducing some.
In Australia, two states have made public transport free in order to incentivise people not to drive.
Egypt, which relies heavily on imported oil, has also introduced temporary measures, including non-essential workers working from home one day a week.
Meanwhile, the Philippines has declared a national emergency, with its government offering subsidies to transport drivers, reducing ferry services and implementing a four-day work week for civil servants.
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