UK should brace for fuel rationing over Iran war crisis, former BP chief Nick Butler warns Keir Starmer
Motorists in the UK could be hit by fuel rationing if the crisis in the Middle East continues to escalate, a former Downing Street adviser has warned.
Nick Butler, head of strategy at BP and a former adviser to Gordon Brown during his time as prime minister, said ministers must now prepare for “a significant supply gap over the next two months”.
With the Strait of Hormuz, a key shipping route for oil and gas, under blockade as Iran fights US-Israeli attacks, the former senior government adviser warned Sir Keir Starmer’s team must now work on a strategy to address fuel shortages.
He said there would be “a real supply shortage, a physical shortage, within a few weeks” and added: “We don’t know how long this will last. But I think the government here and other governments now need to prepare for a serious supply shortage in the next two months.”
Mr Butler referred to the crisis in 2000 when fuel depots were blocked by hauliers and other protesters due to increases in fuel taxes. The protests sparked a wave of panic at the pumps and saw stocks run out.
He warned the results could lead to “a form of rationing”, adding: “We learned from the dispute between tanker drivers in 2000 that oil and gas supplies are absolutely vital to the functioning of the economy and you can’t bring in new supplies quickly.”
he said Today The program on BBC Radio 4 said: “In the short term, we need to look at the resources we have and look at vital sectors like healthcare, food supply, hospitals, which are essential elements that need to be protected.
“And beyond that, if we get to that situation, it’s the government’s responsibility to decide how to divide what’s left.”
This, he said, would lead to “price fluctuations” amid competition between countries for more supply.
His warning comes after Sir Keir announced intervention on heating oil and energy prices on Monday morning. The Prime Minister also said that Britain was in talks to keep the Strait of Hormuz open.
About one-fifth of the world’s oil supplies are transported through the straits, so a blockade could lead to a significant oil shortage.
Amid concerns that the cost of living is worsening, the prime minister has also pledged to help UK households struggling with rising energy prices caused by war in the Middle East.
Speaking in Downing Street, Sir Keir said: “Today I am announcing urgent support for vulnerable heating oil customers and we will provide £53 million to the households most affected.
“This government will always support working people. Helping with living expenses throughout this crisis is my first instinct, my first priority.”
