How the ‘fuel crisis’ started - and how it will be solved
With fights breaking out on petrol station forecourts, fuel purchases limited to £30, and some petrol stations running dry, how did we get here and where do we go from here?
THE perceived fuel shortage has brought us stories of motorists queuing for hours at petrols stations and fights on the forecourts.
The Government has scrambled to react to ensure that motorists can continue to fill up, with the army placed on standby to drive fuel tankers if needed.
This is the latest in a string of crises, with energy prices skyrocketing, a shortage of commercial CO2, and rising food prices as a result of the said shortage and a major shortage of HGV drivers.
How did the fuel crisis start?
On Thursday last week, oil giant BP said it would have to “temporarily” close just “a handful” of its petrol stations due to a shortage of lorry drivers to deliver fuel.
At the time, Gordon Balmer from the Petrol Retailers Association (PRA) said demand for fuel was still at 92 per cent of pre-pandemic levels, adding: “there should be ample stock available at refineries and delivery terminals throughout the UK.”
However, fears of a shortage of petrol then triggered panic buying at petrol stations around the country, which in turn triggered an actual fuel shortage as demand suddenly rose exponentially.
Mr Balmer from the PRA later intervened again, saying that motorists should not go below a quarter tank of petrol in the “rare instance” that fuel is not available at the first one they visit.
Brian Madderson, also from the PRA, told BBC Breakfast on Monday that the crisis was triggered by the leak of a confidential BP document sent to the government.
Mr Madderson also claimed that more than 40,000 HGV driver applications were “sitting on the desks in Swansea waiting to be processed”.
The UK is down around 90,000 lorry drivers overall, impacting industries from supermarkets to construction sites, and also limiting deliveries to petrol stations.
The Government says it is addressing the problem, saying: “We recognise the challenges facing industry and have already taken action to increase the supply of HGV drivers, including streamlining the process for new drivers and increasing the number of driving tests.”
Calls NOT to panic buy
Since the crisis began, government and industry leaders have been calling for the public not to panic-buy – calls that appear to have fallen on deaf ears.
As word spread of some petrol stations having to close, drivers began queueing at forecourts across the country.
Small Business Minister James Scully told Times Radio that the country was not heading for a “winter of discontent”, adding: “There is no need for people to go out and panic buy.”
Transport Secretary Grant Schapps echoed Mr Scully, telling Sky News: “We appeal to people to be sensible, fill up when you normally would.”
Why is there an HGV driver shortage?
Brexit is a major contributing factor, with the Road Haulage Association (RHA) claiming that 20,000 drivers have left the UK for “Brexit reasons”.
The coronavirus pandemic has not helped, with HGV driving tests delayed, and drivers returning to their home countries.
Last year, 40,000 tests were cancelled, and 25,000 fewer candidates passed their test in 2020 than in 2019.
Additionally, the RHA says that the average age of an HGV driver is 55, with only 1 per cent of drivers under 25.
This means that around 2,000 drivers are leaving the industry per week, with only around 1,000 new joiners.
What is the government doing?
Pressure has been increasing on the Government to deal with this latest issue, and the reality is that a shortage of HGV drivers cannot be solved overnight.
However, they have put in place some measures, including a temporary visa scheme for 5,000 EU lorry drivers to come to the UK.
The Government has also exempted the oil industry from the Competition Act 1998, meaning that fuel companies can share information and prioritise fuel deliveries to where it is most needed.
50,000 test slots for HGV drivers have also been freed up through a relaxation of testing rules, although this measure has raised safety concerns.
However, the long-term solution to the crisis is to recruit for the 90,000 HGV driver vacancies in the UK, and rising wages in the industry have tempted new recruits.
Salaries have hit £55,000 a year, with benefits and bonuses in addition. Trainee salaries are starting at around £24,000, increasing to over £30,000 once qualified.
But experts say that conditions in the industry need to be improved to increase job retention in the industry, and make it more attractive to potential new recruits.
Will it all be over by Christmas?
With drivers across the country running fuller petrol tanks than normal, demand is “stabilising”, says Boris Johnson, and should return to normal as deliveries progress.
However, the shortage of HGV drivers will remain a problem. Last week, supermarket giant Tesco warned government officials that the HGV driver shortage could lead to panic buying in the run-up to Christmas.
Co-op gave a similar warning, adding that some items may not be available on the shelves.
Mr Johnson said on Tuesday that the Government was doing all it can to “get through to Christmas and beyond” – adding that people should “be confident and go about business in the normal way”.