Panic buying worsens U.K. fuel crisis

By: Drivers.com staff

Date: Monday, 16. June 2008

Panic buying by motorists is helping exacerbate the fuel crisis in Britain where angry truckers calling for a reduction in fuel taxes have been blockading refineries. Although the main blockades have now been disbanded, people still fear that gasoline shortages will prevent deliveries to supermarkets-leading to another run on food supplies.

The blockades by truckers worried that high fuel prices are affecting their livelihood began in France, spread to the U.K., and may even cross the Atlantic where Canadian truckers are talking about similar action.

In response, the OPEC countries have announced a crude oil increase of 800,000 barrels a day, but many experts think this is not enough to bring down prices under present circumstances.

In many ways, the crisis began in the United States, where, earlier this year, new environmental regulations dictated tighter specifications for the ingredients of petrol and diesel. This forced many refineries to install new equipment, while others said it was too expensive to do so, and opted to process only light, clean crudes. This caused a shortage in these crudes and prices rose. Unfortunately, the key OPEC producer, Saudi Arabia, produces "sour" crudes that contain hydrogen sulphide-which is more difficult to refine.

chart of fuel prices and taxes in Europe Undoubtedly, the crisis could be eased if the oil-consuming nations reduced the heavy taxes they impose on fuel, although they're naturally reluctant to forego this lucrative source of revenue.

Drivers in the U.K., for example, pay around 75 per cent in taxes on their gasoline, with France coming a close second. Drivers in the USA pay less than 25 per cent while Canadians pay about 40 per cent in taxes. The chart shows comparative prices for several European countries.

Britain's Automobile Association has warned motorists who hoard fuel in gas cans in their garages and garden sheds that they risk creating a "bomb next door" for their neighbors, and are breaking the law.

The AA advises drivers to top up their tanks when they can, but not to waste gas through excessive queuing or traveling long distances to get it. Instead, the association suggests phoning ahead to see if the garage has supplies. The AA also warns owners of catalytic converter-equipped cars not to attempt to fill up with leaded gas as it could severely damage the converters.

Other AA advice to motorists:
If you have a garage, use it. Motorists who have garages are advised to put their cars inside overnight. Thieves in some areas have cut fuel lines and drained the tanks.

Cut your fuel consumption "Motorists have the ability to reduce their car fuel consumption through five simple and effective methods," says the AA.

1. "Cut motorway speeds from 80 - 85mph to the 70mph speed limit-as well as being illegal, driving at 10 - 15mph above the speed limit consumes 7.7 per cent more fuel for a small car and 5.5 per cent for a medium car.
2. Moderate your speed on other roads-reducing your speed from 70mph to 55mph improves fuel consumption by nearly a quarter for a small car and 18 per cent for a medium car.
3. "Turn off your air conditioning-air-conditioning pushes up fuel thirst by as much as 10 per cent on slower roads.
4. "Pump up your tires-under-inflated tires drain fuel economy at a constant 2.5 per cent. Pump them up to the car manufacturer's recommended pressure, but don't over-inflate.
5. "Avoid queues if you can-an idling engine in a small car wastes petrol at the rate of 1.5 pence per minute and double that for a medium-sized car."

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