Petrol retailers say there is ‘plenty of fuel’ with demand to ‘return to normal levels’ in coming days

Published

4 years ago

September 27, 2021

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Petrol retailers hoping for a return to normal after motorists drained pumps over the weekend have faced yet more forecourt queues – as parts of the economy started to feel the strain.

In some areas, up to 90% of pumps ran dry, according to industry estimates – and there was little sign of the panic-buying diminishing on Monday, with consumers apparently ignoring pleas to stop.

That left industries from taxi drivers to the meat processing sector – and even non-league football – facing difficulties and prompted calls for healthcare workers to be given priority access to fuel.

The British Medical Association said there was a real risk that some would not be able to get to work.

But the Petrol Retailers’ Association (PRA), representing two-thirds of all UK forecourts, said that with many drivers’ tanks now full after the weekend it was watching for an “easing of demand”.

The government said there were no plans to bring in the army to drive lorries to deliver fuel to petrol stations though environment secretary George Eustice said the military’s contingencies unit was always on standby.

Mr Eustice said: “There does come a point – as we saw during a previous episode of panic buying during the pandemic on food – where things settle down and people get used to it, and return to life as normal again.

“The sooner people do that the better.

“The only reason we don’t have petrol on the forecourts is that people are buying petrol when they don’t need to.”

The crisis mushroomed after the disclosure last week that a few petrol stations had seen supply disrupted, due to the nationwide shortage of HGV drivers, prompting widespread panic-buying.

It was still in evidence for a fourth day on Monday, with roads gridlocked as motorists queued for more than an hour in some cases, with lines of cars trailing out of forecourts onto the public highway.

Some petrol retailers – Asda and EG group – have been restricting fuel sales to £30 a time.

Even if the buying frenzy does abate, motorists face a further headache as the price of Brent crude on international oil markets continued to climb, reaching a three-year high of just under $80 a barrel – likely to result in higher prices at the pumps to come.

Meanwhile the RAC, the motoring organisation, said it was aware of “a small number of retailers taking advantage of the current delivery situation by hiking prices”.

The industry has pleaded with consumers to stop panic-buying and sought to assure the public that, with fuel stocks at refineries and terminals at normal levels, it is only a shortage of lorry drivers that has restricted deliveries of fuel.

Gordon Balmer, executive director of the PRA, which represents independent fuel retailers, said: “Delayed deliveries and unusual buying levels have led to supply pressure and a number of forecourts’ stockouts.

“It is unlikely that the vehicles filled over the weekend will need refuelling again soon.

“As a result, we will watch carefully for a possible easing of demand and normalising of forecourt stocks over the coming days.”

RAC spokesman Simon Williams noted however that the panic-buying over the weekend meant every forecourt in the country now needs to re-stock at the same time, putting “unbelievable pressure on the supply chain”.

He added: “We urge drivers to only take the fuel they really need.

“Stock piling in containers only makes the situation worse for those who desperately need fuel as well as potentially causing unnecessary fire risks if not stored correctly.”

Among industries feeling the knock-on effect was the beleaguered meat-processing sector – already buffeted by recent crises such as a shortage of the carbon dioxide used to stun animals for slaughter as well as an exodus of foreign workers.

The British Meat Processor’ Association (BMPA) told Sky News that the petrol crisis had resulted in some companies missing key staff such as vets and meat inspectors.

“So far it has not caused any plants to completely shut but we are monitoring the unfolding situation very carefully,” the BMPA said in a statement.

Meanwhile one private hire taxi firm emailed clients to say its services could be affected to up to 48 hours, warning of delays and that it would not be able to honour some long-distance bookings.

Make UK, the manufacturers’ organisation, said there were anecdotal reports of some firms starting to have problems with the delivery of finished products – though it was unclear whether that was to do with fuel or the wider HGV driver problem that lies behind it.

The crisis has even taken its toll on the sporting world. Non-league Lewes Football Club said that owing to the fuel shortage and the difficulty for players, coaches and officials to attend the game, its mid-week fixture against Carshalton Athletic would be postponed.

The government’s attempts to address the issue have included plans to allow 5,000 more lorry drivers into the UK under temporary three-month visas and the suspension of competition laws to allow fuel industry to work together to address shortfalls.

But they have received a lukewarm response from industry, with complaints that the moves fail to address long-term problems.

Rod McKenzie, head of policy for the Road Haulage Association – which says there is a shortage of 100,000 drivers – told Sky News that the temporary visa move “just about scratches the surface”.

Business

Tesla approves $29bn share award to Elon Musk

Published

6 hours ago

August 4, 2025

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Tesla approves bn share award to Elon Musk

Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.

The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.

The new stock will also bolster his voting power from a current level of 13%.

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He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.

Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.

The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.

The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.

Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.

Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.

But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.

Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.

The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.

It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.

The new compensation package is subject to shareholder approval.

Business

Motor finance operators can breathe big sigh of relief

Published

6 hours ago

August 4, 2025

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Motor finance operators can breathe big sigh of relief

Bank stocks have enjoyed a boost as traders digest the Supreme Court’s ruling on the car finance scandal.

Some of the country’s most exposed lenders, including Lloyds and Close Brothers, saw their share prices jump by 7.55% and 21.62% respectively.

It came after the court delivered a reprieve from a possible £44bn compensation bill.

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Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.

The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.

Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.

Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.

The judgment released some of the anxiety that has been weighing over the Bank’s share price.

Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.

Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.

Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.

Business

FCA considering compensation scheme over car finance scandal – raising hopes of payouts for motorists

Published

1 day ago

August 3, 2025

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FCA considering compensation scheme over car finance scandal - raising hopes of payouts for motorists

Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.

In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.

The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.

It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.

The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.

What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

It has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.

The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.

Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.

In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.

This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.

It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.

Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.

“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”