UK Fuel Crunch Forces Starmer to Face Difficult Policy Choices
China Boosts Oil Stockpiles Despite Import Plunge CityAM.com is the online presence of City A.M., London's first free daily business newspaper. Both platforms cover financial and business news as well as sport and… Sir Keir Starmer has spelt out a number of policies to address fuel shortages, signalling the government’s fears that the Iran war could hit motorists and households.
During Prime Minister’s Questions, Starmer defended an announcement last year to “phase” new sanctions on Russia, while also trailing a policy to freeze a 5p fuel duty cut beyond September.
The government pledged to introduce a new sanction on oil and gas flows from Russia that passed through third countries, announcing the measure last October.
But amid fears of jet fuel supplyshortages, the government’s sanctions department slipped out a notice late on Tuesday that the UK would allow imports of jet fuel and diesel that originate from Russia and are refined in other countries such as India.
A separate licence for the maritime transport of Russian liquefied natural gas was also issued.
Starmer has faced criticism from Tory leader Kemi Badenoch, who called the policy “insane”, while Foreign Affairs Committee chair Emily Thornberry said it risked undermining the UK’s support for Ukraine.
While trade minister Sir Chris Bryant apologised to MPs for the “clumsy” handling of the sanctions policy, government ministers stuck to the measure, which would be part of a process for a “strong new package” to sanction Russia for its full-scale invasion of Ukraine.
By contrast, the European Union has stuck to implementing the ban in full despite fears of fuel supply shortages.
Analystshave warned that the UK is at a greater risk of suffering from shortages, although government officers said airlines had not seen any shortages while industry was working on “contingency” plans.
Petrol prices hit the highest level since Iran began in late February this week, according to RAC, adding to concerns thatinflationis surging across the country.
“The last government used exactly the same technique,” Starmer said, not highlighting a specific example.
“These are new sanctions being phased in.” Badenoch also pressed the Prime Minister on the government’s move to fully ban issuing new oil and gas exploration licenses in the North Sea.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | ▲ +0.34% |
| WTI Crude | $96.90/bbl | ▲ +0.21% |
| EN590 Diesel | $846/MT | ▲ +0.18% |
| Jet Fuel A-1 | $1090/MT | ▲ +0.55% |
| Mazut M100 | $450/MT | ▼ -0.15% |
| Bitumen 60/70 | $470/MT | ▲ +0.08% |
| Sulphur Gran 99.5% | $470/MT | ▼ -0.44% |
| Urea 46% Gran | $650/MT | ▲ +1.12% |
| NPK 16-16-16 | $460/MT | ▼ -0.28% |
| Nat Gas TTF | $15.42/MMBtu | ▲ +0.92% |
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