4th January 2006

UK fuel supplies

There have been media reports of widespread fuel shortages during the Christmas and New Year period. Similarly today, there has been a report that Britain faces an oil supply crisis.

These reports greatly exaggerate the situation as there are no widespread problems with fuel distribution but there are some localised shortages that member companies are already addressing.

Demand for heating oil has been higher than normal because of fears of cold weather coupled to some commercial users switching from natural gas to gas oil due to higher gas prices and fears of interruption in supply due to factors outside of the UK.

Road fuel demand in the period leading up to Christmas is always higher than average and drops off immediately afterwards. Delivery patterns take account of this as far as possible but with a with a four day holiday break some sites ran low on stock or had to await re-stocking. The oil companies, suppliers and delivery companies have worked hard since Boxing Day to make sure that filling stations have been re-stocked.

The fire and subsequent closure of Buncefield oil terminal is not highly significant in contributing to the current situation. The oil companies are working to help minimise the effects of the closure, which has necessitated some drivers and delivery tankers working from different terminals with consequent extra distance to be covered to make deliveries.