From MoneyWeek · · 1m 30s
Diesel Crisis Exposes UK Weakness
UK diesel prices hit £2 per litre as global supply chain breaks.
In brief
UK diesel prices hit £2 per litre as global supply chain breaks. Britain faces diesel shortage risks due to reduced refining capacity and industrial decline. Originally reported by MoneyWeek.
Diesel price crosses £2 per litre
The average price of diesel in the UK crossed the £2 per litre threshold on Monday.
Diesel prices up 54% since Iran war
Diesel has risen by 54% since the start of the Iran war and is climbing higher.
Strait of Hormuz closed
The Strait of Hormuz has been largely closed to traffic, putting a squeeze on oil supplies.
Refining capacity hit
Refining capacity across the Persian Gulf has been badly hit by the conflict, with shipments of refined products falling by up to half.
Ukrainian strikes on Russia
Ukrainian drone strikes deep within Russia have taken out a lot of that country's capacity.
UK diesel reserves low
Britain has only an estimated 42 days' supply of diesel in storage, the lowest buffer of any major developed country.
UK imports diesel from US
Britain imports a third of the diesel it consumes from the US.
Diesel crisis risks rationing
If Britain runs out of diesel, the government may have to step in with a ruinously expensive subsidy scheme and rationing.
Industrial decline in UK
Britain has been steadily deindustrialising for 20 years with cement production down to 1950s levels and car production down to early 1960s levels.
The takeaway
Britain faces diesel shortage risks due to reduced refining capacity and industrial decline.
