Reeves: No immediate UK fuel shortages, energy policy changes due

The UK is not facing an immediate shortage of petrol, diesel or jet fuel, Chancellor Rachel Reeves said on Thursday, though the International Energy Agency has warned that Europe has approximately six weeks of jet fuel supplies remaining before stocks could fall below critical levels. Her comments came amid growing concerns about aviation fuel supplies following the US-Israel war with Iran and the resulting blockade of the Strait of Hormuz, a crucial shipping route through which a significant proportion of the world's aviation fuel normally passes. European airlines are warning of jet fuel shortages within weeks, with the EU drafting emergency plans to maximise refinery output and address the supply crunch. Europe imports approximately 75 percent of its jet fuel from the Middle East, making it more dependent on foreign supplies for this fuel than any other transport fuel. The European Commission will introduce EU-wide mapping of refining capacity from May and measures to ensure existing capacity is fully utilized, according to a draft proposal seen by Reuters. The International Energy Agency forecasts jet fuel shortages by June if the region can only replace half of its normal Middle Eastern supplies, while some airports have already warned of shortages within three weeks if the strait remains closed. UK airlines are currently not seeing disruption to jet fuel supply, according to Airlines UK, which represents carriers operating in the country. The trade association attributes this in part to the UK's diverse fuel supply. However, easyJet chief executive Kenton Jarvis noted that the UK imports between 80 and 90 percent of its jet fuel, with the Kuwaiti refinery being particularly important. Industry executives estimate that supplies could begin tightening significantly by the second week of May if the conflict continues. Airlines are preparing for potential cuts by identifying routes with multiple daily departures for reduction and considering the use of more fuel-efficient aircraft. Spain has emerged as a relative bright spot, with eight refineries making it a net exporter of jet fuel, while the UK imports more than 60 percent of its demand. The UK's economy grew by 0.5 percent in February, according to new data, though this reflects activity before the start of the Iran conflict. Reeves also announced plans to increase North Sea oil and gas extraction and reform the link between gas and electricity prices.