Market

Panic buying of fuel shows early signs of easing

The “frenzy” of panic buying by motorists during the UK fuel crisis that has drained a majority of the country’s 8,000 petrol stations is showing early signs of dissipating, government and industry figures said on Tuesday.

Brian Madderson, chair of the Petrol Retailers Association, a trade body, said that while the situation was still very difficult, with garages running dry within hours of securing new supplies, his members saw signs of an easing.

“Panic buying is continuing, it certainly hasn’t disappeared, but it’s at a slightly less frenzied rate,” Madderson told the Financial Times.

“A lot of our members still have dry tanks, but we’re hopeful some sort of equilibrium between supply and demand might be reached by the weekend.”

The government has been under increasing pressure to get a grip on the crisis, which began with limited disruption to fuel deliveries to petrol stations due to a shortage of heavy goods vehicle drivers, followed by panic buying by motorists that drained supplies at the weekend.

Ministers have repeatedly said there is no shortage of fuel at refineries or storage depots, but they have put the army on standby to help with deliveries to garages if necessary.

The government has also loosened visa requirements for foreign HGV drivers and suspended aspects of competition law to let fuel suppliers co-operate and share data.

Grant Shapps, transport secretary, said the government was seeing “very tentative signs of stabilisation” after days of queues by motorists outside petrol stations.

“A lot of petrol is now being transferred into people’s cars and there are now the first very tentative signs of stabilisation in the forecourt storage which won’t be reflected in the queues as yet, but it’s the first time we’ve seen more petrol in the petrol stations itself,” he added.

“I think . . . the sooner we can all return to our normal buying habits, the sooner the situation will return to normal.”

The PRA has said this week that between 50 and 90 per cent of its members have been affected.

Dan Myers, UK and Ireland managing director at XPO Logistics, one of the country’s three large bulk liquid distributors, said demand for fuel was still up 50 per cent on Monday compared to normal circumstances, but down from as much as a 400 per cent jump over the weekend.

He added that the number of petrol stations running dry out of the hundreds that it supplies had halved in the past 24 hours.

“It is going to take a little while for stocks to get back to normal,” said Myers.

There are concerns the fuel shortages still pose significant disruption to public services and industry.

Matthew Taylor, chief executive of the NHS Confederation, which represents healthcare organisations across the country, said fuel shortages had “the potential to affect the delivery of vital services to some of our most vulnerable people in society” as medical workers and care staff struggle to find fuel for their cars.

The British Medical Association and trade unions have called on the government to give key workers priority access to petrol stations.

Sectors, including couriers and taxi drivers, have expressed concern about whether they will be able to refill once their vehicles run out of fuel.

Industry executives have warned that data on the scale of the problem is at best patchy, with no centralised system to monitor the amount of fuel on garage forecourts.

“We’re chasing our tail a little as stations might get refilled but are drained again within hours, so the data we have can soon be out of date,” said one executive.

Additional reporting by Daniel Thomas in London

Most Related Links :
newsbinding Governmental News Finance News

Source link

Back to top button