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Britain’s Prime Minister is due to meet senior energy executives at Downing Street on Monday as concerns mount that the Iran war could lead to fuel shortages in the UK within weeks.
With petrol stations already running short of fuel, Keir Starmer is hosting a roundtable meeting with leaders of major energy firms including Shell, BP, Centrica and Equinor, alongside representatives from shipping giants Maersk and CMA, and the financial chiefs of HSBC, Lloyds and Goldman Sachs.
The talks come as the conflict started by the US and Israel continues to disrupt maritime traffic through the Strait of Hormuz, through which almost one fifth of the world's fuel exports usually passes. The crisis is pushing up costs worldwide and tightening supply chains, with knock-on effects for British consumers and businesses.
The London meeting will allow ministers “to hear directly from industry leaders and set out how the UK is working with partners and allies on de-escalation”, a Downing Street official said. “The Prime Minister will reiterate that the best way to reduce pressure on the cost of living is through stability in the region and protecting global supply routes.”
The meeting will also include a briefing from the Royal Navy’s commander of maritime operations on the security situation in the Gulf and its impact on shipping. The government is also working on plans to co-ordinate with allies to safeguard freedom of navigation through the strait, which links the Gulf of Oman to the Arabian Gulf.
Despite reassurances from ministers that supplies remain stable, contingency planning is under way as the UK imports around half of its diesel and more than 60 per cent of its jet fuel, much of it from the Middle East, leaving it exposed to disruption.
Education Secretary Bridget Phillipson said that while planning for shortages was prudent, there was “no need for consumers to change their behaviour”.
“We shouldn’t engage in scaring people … but governments will plan for contingencies, that is always the right thing to do,” she told the BBC.
However, industry experts have warned that fuel shortage risks are genuine. Supplies were becoming “tight”, said Ellen Fraser, an energy specialist at Baringa consultancy, and the UK’s limited reserves could run down quickly if the disruption persists. “There is a real risk of the UK effectively running short,” particularly in terms of jet fuel, she said.
UK Chancellor Rachel Reeves is also expected to raise energy concerns at a G7 meeting about countries restricting fuel exports to protect domestic supplies. Unless global supply chains are stabilised “existing shortages will be made worse, hitting growth across the world”, she is expected to warn.
Former BP executive Nick Butler cautioned even a swift end to the conflict might not resolve the crisis. “This is not just political disruption – production facilities have been damaged,” he said. “The pressure point in Europe could come by late April or early May.”
With fears that diesel shortages and flight disruption are beginning to take hold in Britain, Monday’s meeting looks set to focus on how government and industry leaders can work in tandem to cushion the country from a deepening global energy crunch.
