News: UK Fuel Shortage: How Can Drivers Save Money?

What's causing the UK fuel shortage and our top tips for saving money on the road.

UK Fuel Shortage: The Latest

Headlines about fuel shortages, protests and supply problems are becoming a more common sight across the UK. But, what’s causing them, what’s being done and how can drivers avoid rising costs and supply issues? Our thoughts exactly, so let’s have a look. 

What's causing the UK fuel supply issues?

1. A race for alternatives to Russian fuel supplies

Sanctions placed on Russian imports since the Ukraine invasion have certainly exacerbated the issue. Russia supplied 18% of the UK's diesel in 2020. Finding alternative supplies is proving difficult as many other countries around the world also try to wean themselves off Russian energy supplies. 

2. Climate protestors continue to disrupt oil deliveries 

Key terminals across the UK have been blocked by climate activists. Protest groups including Just Stop Oil and Extinction Rebellion have teamed up to cause disruption. In some cases, protestors were seen gluing themselves to roads and locking themselves to oil drums. Oil pipeline distributor, ExxonMobil UK, said the protests which started on 1 April 2022 shut down three of its terminals. 

3. COVID-19 production issues remain 

Plants which process raw petroleum into fuel for vehicles were shut down during the COVID-19 pandemic - and haven't yet fully recovered. Add to this a sharp rise in demand and we're seeing global stocks of diesel and similar fuel types fall to their lowest supply levels since 2008. 

4. Soaring oil prices push pump prices to highest levels

According to the RAC's Fuel Watch, the cost of filling up a family car with petrol is a third higher now than a year ago in March 2021. Diesel prices have increased by around 40% over the same period. Average diesel prices at the pumps in Europe are now more expensive than petrol for the first time in history. 

With oil prices soaring (reaching a global 14-year high of $137.72 in March 2022), the knock-on effect is being seen at the pumps. Oil is traded in dollars and the exchange rate to the pound is currently very poor ($1.35 to the pound). This could mean even steeper inclines in costs. 

As prices seem to be consistently going up, some drivers have been panic-buying and filling their cars up as much as possible in fear of further increases. This is thought to be further impacting supplies. 

What's being done to tackle the UK fuel crisis? 

1. UK Government looking to source alternative supplies of fuel

Europe is short of diesel. The Middle East tends to have a surplus. However, increasing flow from these areas will take time - it certainly isn't a quick fix. A spokesperson for the UK Petroleum Industry Association (UKPIA) said that fuel suppliers are working with the Government to deliver the fuels the UK needs "while adjusting long-term supply routes to reduce reliance on Russian crude oil and oil products". 

2. Driving to net-zero 

The UK Government has a strategy in place to drive what it's calling an 'Electric Vehicle Revolution'. The goal has already been set to ban the sale of new internal combustion (or petrol and diesel) vehicles by 2030. A commitment of £1.6billion has been made to improve the UK's electric vehicle charging network for convenient, affordable, and reliable charging. 

3. Minimising protests and activism 

While the protests certainly divide opinion, with outrage on both sides of the divide, UK Policing officials are keen for the oil industry to provide more site security so any protestors can be dealt with more swiftly in future. The UK government are at loggerheads over proposed bills for more power to curb the protests, with cross-party opposition in the House of Lords. 

4. Cuts to fuel duty coincides with rising oil prices

UK Chancellor of the Exchequer, Rishi Sunak, announced a historic cut in fuel duty in his Spring Statement. This unfortunately coincided with an increase in the price of oil by $6 per barrel, effectively cancelling out the reduction in fuel duty. This has lead to drivers seeing no difference in the price of fuel. 

What can I do to save money in the fuel crisis?

1. Pay attention to how efficiently you're driving

If you're currently driving a petrol or diesel vehicle and want to avoid filling up with fuel for as long as possible, there are a few easy steps you can take to increase your fuel efficiency: 

• Keep your tyres inflated. Low tyre pressure will increase drag on your car or van. Regularly check the pressure is correct. But don't over-inflate as this also uses more fuel.
• Have a spring clean. The lighter your load, the less effort is needed to accelerate. By not carrying unnecessary weight, you could save a little more money. 
• Remove your roof rack. Don't keep your roof rack on if you're not using it. Removing it reduces drag, which means your engine isn't working as hard. 
• Turn off air-con at lower speeds. Air-con uses engine power - and therefore fuel. Having it switched off when it's not needed will help save money. The general consensus is it's more efficient to drive with the windows down (air-con off) at lower speeds. At higher speeds, you're better off with the windows up and air-con on. Beware though - it's worth blasting your air-con occasionally or it could stop working. 
• Don't completely fill up with fuel. This might sound counterproductive, but fuel is heavy. By filling your tank to the brim you're adding lots of weight. Less fuel therefore means a more efficient drive. Maybe try filling up slightly more often, and putting less in - half or three quarters of a tank. 
• Only use cruise control on motorways. Cruise control is great for saving fuel on long, flat roads by keeping the car at a constant speed. On roads that aren't flat however, cruise control is actually less efficient than a driver, as it will accelerate for longer going uphill. 

2. Switch to a newer vehicle 

Technology constantly changes in cars and vans. With each new vehicle released, fuel efficiency increases. While older vehicles tend not to reduce in fuel efficiency as they age (provided they're looked after), if your car or van is an older model it may be costing you more in fuel than if you swapped it for the newer version. 

3. Switch to an electric vehicle 

Swtiching to a newer car or van can help you save money at the fuel pumps. Switching to an electric vehicle (EV) will mean you avoid the pumps altogether. As fully electric vehicles do just that - run purely on electricity - you can charge it from home overnight, or at a public charging point while you're out and about. Most energy providers will even give you a cheaper tariff as an EV driver. There are electric cars to suit every budget. See our Best Electric Car Lease Deals to find your fit. 

4. Switch to a hybrid vehicle 

If you're not quite ready to switch to a fully electric vehicle, it's worth consideing switching to a hybrid. Hybrid vehicles use both electricity and a combustion engine. Contact us to talk about whether a hybrid vehicle is a good choice for you, or take a look at our Top Hybrid Car Lease Deals. 

If you’re thinking about switching out your vehicle for a more efficient model or would like to discuss the other cost benefits of an EV or Hybrid Vehicle, our industry specialists are here to discuss this with you in more detail. With over 22 years’ experience in the automotive finance industry, we have strong ties with manufacturers and finance providers to ensure we always give you the best deal.