A fuel rationing warning has been issued as the war in the Middle East rages on. European Energy Commissioner Dan Jorgensen said the EU is preparing for a « long-lasting » energy crisis as Iran continues to block the Strait of Hormuz.
The EU is now looking into « all possibilities » as fuel prices continue to rise. Jorgensen has warned the situation could worsen with the possibility of fuel rationing and the release of emergency oil reserves both on the table. Although the UK is no longer in the EU, actions from other nations will impact our industries that rely on fuel.
Speaking to the Financial Times, Jorgensen explained: « This will be a long crisis . . . energy prices will be higher for a very long time. » The commissioner also said: « We expect it to be even worse in the weeks to come. »
He added: « It certainly is our analysis that this will be a prolonged situation and countries need to be sure that they . . . have what they need. »
The official said the possibilities include fuel rationing and releasing oil from the EU’s emergency reserves. However, he reiterated that the EU was not currently in a fuel crisis, but officials are planning for the worst.
He explained: « We are preparing for the worst-case scenarios, although we have not yet reached the point of needing to ration critical products such as kerosene or diesel. It is better to be prepared than to regret it. »
Iran has responded to US and Israeli strikes by blocking the Strait of Hormuz. The shipping lane sees around 20% of the world’s oil and gas pass through it which has caused the price of fuel to surge.
The price of a barrel of oil surged past $109 on Thursday (April 2). This is up from the $70 cost per barrel from before the conflict started.
In the UK, petrol has soared by around 22p to an average of 154.45p since the war began. Meanwhile, the cost of diesel has increased to an average of 185.23p – a 43p jump per litre.
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