RAC Foundation warns Britain could face diesel shortage

The RAC Foundation has warned that the lack of diesel refineries in the UK is creating an increasing dependence on foreign fuel that could lead to drivers facing a diesel shortage.

Over the last 20 years, the demand of diesel has risen 76% as more motorists have switched to the traditionally more economic fuel.

The number of diesel cars on the road last year totalled 11 million, compared to just over 1.5 million in 1994. Should this rate continue, the RAC Federation have said that by 2030, diesel cars will be four times as popular as petrol vehicles.

This will leave the UK facing a shortage as it will be unable to produce enough diesel to keep up with demand, forcing the UK to rely on imported stocks.

The dependency on foreign fuel has also increased due to the closure of a number of refineries. In 2009, there were nine major refineries in the UK with the number today standing at six, with some of those being for sale.

The issue is addressed in the RAC Foundation’s ‘Readdressing The Balance Between Petrol And Diesel Demand’ report.

Steve Gooding, director of the RAC Foundation, said: “Ministers have just announced plans to curb air pollution with potentially significant implications for the millions of households who run a diesel vehicle. As this report illustrates, diesel-engined cars, van and lorries are deeply engrained in our society. The report also highlights another concern – the security of supply of diesel fuel.

“Today every other car bought is a diesel, but our refineries have struggled to keep pace with demand and have not attracted the investment they need to switch over from petrol production.”

“Most of our refineries – some of which are more than half a century old – were built when diesel was a niche product. Retrofitting them is a billion pound decision that has failed to stack up for investors who see refining as a low margin business despite our sky high pump-prices. The result: since 2009 three UK refineries have closed, and others have been up for sale.

“That leaves us at the mercy of the global market and much of the rest of Europe is in the same boat. We are having to look further and further afield for the fuel we need.

“Recently motorists have benefitted from falling forecourt prices. We should be concerned about the potential for things to go the other way.”

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