UK Fuel Crisis: Shell CEO Warns of Shortages & Rationing Within Weeks
Europe could face fuel shortages as early as next month, Shell CEO Wael Sawan has warned, citing escalating tensions in the Middle East and a resulting disruption to energy supplies. The warning comes as Asian countries initiate to reduce energy consumption in response to mounting pressure on oil and gas availability.
Sawan cautioned that the impact is already being felt in South and Southeast Asia, with a potential “ripple effect” extending to Europe in April. He indicated that European governments may need to implement demand-side measures – including restrictions on energy use – for the first time in nearly four years to avert widespread shortages. “We are trying to work with Governments to alert them to the levers they may need to pull – including demand‑side measures, what they need to do around storage, what they need to do around purchasing stock and so on and so forth,” Sawan told an industry conference in Houston, Texas.
The crisis is being exacerbated by instability in the Strait of Hormuz, a critical waterway for global oil and liquefied natural gas (LNG) shipments, through which approximately 20 percent of the world’s supply passes. The Independent reported that the situation in the Strait of Hormuz is “deepening” and contributing to the potential shortages.
Oil and gas prices have already surged in response to the escalating tensions, increasing by 40 and 60 percent respectively over the past month, according to GB News. Slovenia became the first EU member state to introduce fuel rationing on Monday, limiting purchases to 50 litres per day for motorists and 200 litres for farmers and businesses, though Prime Minister Robert Golob insisted the country had sufficient fuel reserves.
The UK is considering deploying civilian ships to the Strait of Hormuz to clear Iranian mines, according to reports. The Royal Navy is reportedly planning to utilize chartered ships as “motherships” for drones tasked with locating and neutralizing underwater explosives in the Gulf region.
A senior UK energy industry source, speaking to The Telegraph, described Sawan’s warnings as representing a “worst-case scenario,” but one that remains “absolutely possible.” The source noted that current concerns center more on price increases than immediate physical supply disruptions, adding, “Remember, even at the height of the last energy crisis, when we lost huge gas volumes from Europe, we still managed to ensure security of supply.”
Labour officials stated that Britain possesses a “diverse and resilient energy supply” and is actively monitoring the situation. However, the industry source cautioned that if prices continue to rise, British businesses and households may begin to voluntarily reduce their energy consumption. The UK government retains the authority, under the Energy Act, to assume control of petrol supplies in the event of a crisis.