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The Independent UK
The Independent UK
David Maddox

UK should brace for fuel rationing over Iran war crisis, former BP chief warns 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, who was head of strategy at BP and a former adviser to Gordon Brown when he was prime minister, said ministers should be preparing now for a “significant shortfall of supply over the next two months”.

With the Strait of Hormuz, a key shipping route for oil and gas, being blockaded as Iran fights back against US-Israeli strikes, the former senior government adviser warned that Sir Keir Starmer’s team needs to work now on a strategy for fuel shortages.

He said there would be “a real shortage, a physical shortage, of supply in a few weeks’ time”, adding: “How long that goes on, we don’t know. But I think the government here, and other governments, must now be preparing for a significant shortfall of supply over the next two months.”

Mr Butler referenced the crisis in 2000 when fuel depots were blocked by hauliers and other protesters because of increases in fuel duty. The protests sparked a wave of panic buying at the pumps and saw supplies dry up.

He warned that the consequences could involve “a form of rationing”, adding: “We learnt from the tanker drivers dispute in 2000 that oil and gas supplies are absolutely crucial to the running of the economy and you can’t bring on new supplies quickly.”

He told the Today programme on BBC Radio 4: “In the short term, we have to look at what supply we have and look at the crucial sectors – the health service, food supply, hospitals – those are key elements that must be protected.

“And beyond that, it is then for the government to decide how to ration what is left – if we get to that situation.”

He said this will lead to “price volatility” amid competition between countries for more supply.

His warning comes as Sir Keir announced an intervention on heating oil and energy prices on Monday morning. The prime minister also said the UK was in discussions to keep the Strait of Hormuz open.

Around one-fifth of the world’s oil supplies is transported through the straits, so a blockade could lead to a significant shortage.

With concerns over the cost of living worsening, the prime minister also pledged to help UK households struggling with soaring energy prices caused by the war in the Middle East.

Speaking in Downing Street, Sir Keir said: “I’m announcing immediate support for vulnerable heating oil customers today, providing £53m for those households that are most exposed.

“This government will always support working people. That is my first instinct, my first priority, to help you with the cost of living throughout this crisis.”

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