UK: Lack of drivers produces shortage of fuel, closure of forecourts

BP, Esso and Shell all reported disruptions at retail sites due to lack of fuel supply. Hoyer points at lack of HDV drivers for supply issues.

A number of British forecourts have faced closure due to the lack of heavy-duty vehicle drivers nationwide.  

BP said yesterday that up to 100 of its stations had suffered disruptions with several closing down completely. ExxonMobil also said a “small number” of its Esso petrol forecourts have been affected.

The supply issues come as Hoyer, one of the UK’s largest fuel logistics companies, said it is struggling to meet deliveries for a number of clients including BP, Esso and Shell due to the lack of drivers, reports The Independent.

“These have been caused by some delays in the supply chain which has been impacted by the industry-wide driver shortages across the UK and there are many actions being taken to address the issue. We continue to work with our haulier supplier to minimise any future disruption and to ensure efficient and effective deliveries to serve our customers,” said BP in a statement.

BP said it was prioritising deliveries to motorway service areas, major trunk roads and sites with the largest demand and seeking to minimise the duration of "stock outs".

The impact on fuel prices

Fuel pricing expert, Tom Hatton, Head of Product at Kalibrate, explores the impact this will have on pricing and how fuel retailers can maintain appropriate pricing levels

“Typically, we see a rush to fill up vehicles in response to news like this, but people also tend to be a little more conservative and drive less. Therefore, it’s common to see volumes go up temporarily. I expect there will be a small rush of demand off the back of this news, followed by a gradual return to normal, supply permitting,” says Tom.

 “Fuel retail and pricing experts need to be aware of where increased logistics costs have occurred, and they will need to account for it. Most significant is the methodology which a retailer determines which stations to temporarily close.”

Tom also believes it’s possible to identify the likely economic and consumer reactions by looking to France. Throughout 2018-2020 a series of ‘Mouvement des gilets jaunes’ (strikes) took place during which the fuel supply chain was interrupted at several points. Media outlets responded quickly to any strike action and consumers rushed to the pumps to fill up. Prices typically rose regardless of the commodity market, reflecting the additional cost of obtaining and distributing product. Demand tended to drop during the subsequent days as fuel sat unused in consumer’s tanks amid no real increase in driving-time.