No issues with UK fuel supply, says Reeves
Chancellor Rachel Reeves addressed concerns about the UK’s fuel availability, confirming there are no immediate shortages of petrol, diesel, or jet fuel following the International Monetary Fund (IMF) meeting in Washington. She emphasized to the BBC that the nation “currently enjoys stable fuel supply,” underscoring confidence in the present situation despite rising global energy prices.
New economic data revealed stronger-than-expected growth in February, with the UK’s GDP rising by 0.5%. However, this growth predates the recent US-Israel war with Iran, which has significantly increased energy costs worldwide. The International Energy Agency warned that Europe’s jet fuel reserves are sufficient for six weeks, but stocks could dip below critical levels if demand remains high.
Reeves highlighted the need to reform the relationship between gas and electricity pricing, stating,
“We do need to delink gas and electricity prices, because at the moment, on many occasions, electricity prices are based off the gas price, even though the costs of producing electricity, by and large, have not changed as a result of this conflict.”
The UK, while a net exporter of petrol, imports wholesale oil and gas, making it particularly vulnerable to gas price fluctuations.
She also announced plans to unveil updates to energy policy soon, including strategies for North Sea oil and gas extraction. “We are looking at what we can do to exploit more of our resources in the North Sea through tie-backs,” Reeves explained. These tie-backs allow new discoveries to be connected to existing platforms, reducing the need for extensive infrastructure. More details on the policy changes will follow in the next few days.
Despite the IMF revising its annual growth forecast for the UK from 1.3% to 0.8%, Reeves expressed optimism about the current supply situation. She noted that the government is closely tracking developments and remains prepared to adapt as necessary.
