UK fuel protests

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The term UK fuel protest refers to a series of protests held in the United Kingdom over the cost of petrol. The Conservative Party urged motorists to "dump the pump" by not visiting petrol stations on 1 August 2000 [1]. This campaign was followed in September 2000, by blockades preventing tankers from reaching petrol stations. Further protests took place in September 2005, and though these did not block the tankers, panic buying caused around 3,000 stations to run dry [2].

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[edit] September 2000 protests

Protests began on 5 September 2000 when an increase in the price of crude oil prompted major oil companies to announce an increase in the price of petrol to around £0.81 GBP per litre of unleaded (equivalent, at the time, to around $4.48 per US gallon). The following day a number of lorries blockaded the entrance to the British side of the Channel Tunnel, causing heavy delays on the M20 motorway. The following day a further group of protesters, again from the haulage industry, blockaded the Stanlow Shell oil refinery near Ellesmere Port in Cheshire. Other protesters blockaded the Hertfordshire Oil Storage Terminal.

During the protests, the oil industry was the target of some anger due to a perceived failure to pass on reductions in the price of crude oil to the consumer and a readiness to increase prices. However, concern over the government's Fuel Price Escalator policy has been the primary cause behind some protests; three-quarters of the cost of petrol in the UK is tax (in the form of fuel duty or value added tax), somewhat higher than the European average, and dramatically higher than other developed countries such as the United States and Australia. The fuel protesters said that this disparity was making it increasingly difficult for the British haulage industry to remain competitive with their European rivals, especially since the introduction of the European free market on 31 December 1992. The situation led to a difficult position for the oil companies: it was actually perhaps in their long-term interest to support the protesters because if the pressure on the Government succeeded in reducing fuel tax, then consumers would likely buy more petrol, increasing profits for the oil companies. Because of the temporary chaos that ensued it was politically impossible for the companies to come out in support of the protestors, although some commentators suggested that they did not do all they could to get lorries carrying fuel through the assembled protesters. The oil companies responded to such claims with the argument that lorries could have got through the protesters at some depots, but they refused to do so for the safety of the drivers.

By Sunday 10 September 2000, six of the eight major oil refineries around the country had been blockaded by protesters. Drivers, realizing that no new petrol would be supplied to petrol stations, started panic-buying petrol while it was still available. This itself had the effect of hastening a petrol shortage because petrol stations operate a tight just-in-time policy in order to minimize operating costs which does not allow for rapid surges in demand. Some economists chastised the government for calling the phenomenon "panic buying", saying that on the contrary the behaviour was rational in the circumstances. Local radio stations ran phone-ins advising drivers where fuel had not sold out.

By Tuesday 12 September 2000, one third of all stations in the country were reported to be completely without fuel. Various reports indicated between 75% and 90% of stations were closed at some point during the crisis; many stations closed before they were completely empty in order to lengthen the time for which they could supply emergency services. On the morning of the 12th Tony Blair was driven back to London from Newcastle in order to deal with growing chaos. Many commentators were keen to point out the high fuel consumption rate of his Jaguar, though others regarded this as opportunistic. Some health authorities cancelled non-essential operations to reduce ambulance movement. Later in the day Blair held meetings with the UK chairmen of the oil companies and on the evening news announced that measures were being taken to clear the blockades and that the "situation would begin to return to normal tomorrow". Blair and John Prescott, the Deputy Prime Minister and Minister for Transport, said that the Government would not be bounced into a "rash decision" on fuel tax because of the protesters.

[edit] Aftermath

Once the safety of the lorry drivers was guaranteed by a heavy police presence at the refineries and depots, and noting a shift in public opinion that had earlier been firmly behind the protesters, the blockades dissipated rapidly on Wednesday morning. The protesters said that they were giving the government sixty days to act on the issue or they would protest further.

In November, just before the sixty day deadline, there was some further buying reported in East Kilbride and Glasgow. In fact such buying turned out not to be necessary; although truckers mounted slow-moving protests along motorways converging on London over the 13 November and 14 November, the renewed protest did not gather much support. Chancellor Gordon Brown had announced in his pre-Budget report published the week beforehand that fuel duty was to be frozen for two years, perhaps eroding some of the support base for the strikes. By Christmas extra production by OPEC members had brought the price of crude oil down, which in turn led to petrol price reductions.

A report published by the Department for Transport said that at the protest's peak, 14 September, motorway traffic was 40% below normal levels and non-motorway traffic 25% below.

The protests were organised by Richard Haddock, David Handley and Brynle Williams. Williams later became a member of the Welsh Assembly for the Conservative party. In May 2004, with crude oil and petrol prices edging ahead of their September 2000 levels, fuel prices again hit the public agenda, with some suggesting further protests may be imminent.

By August 2005, fuel prices had risen far above those that triggered the 2000 fuel protest without any further disruption, to an average of more than £0.90 GBP per litre (US$1.64 per litre, or $6.21 per US gallon). Keep in mind these figures are not adjusted for inflation.

[edit] September 2005 protests

Tempers flare during long queues outside a Birmingham petrol station, 12 September 2005.
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Tempers flare during long queues outside a Birmingham petrol station, 12 September 2005.

In September 2005, petrol increased in price to record British highs. While a small number of stations were charging over £1 a litre [3] (approximately $7.25 per U.S. gallon), as some had before, the average price had for the first time reached over 90p a litre in August 2005, and had continued to climb beyond, reaching an average of over 93p per litre before the start of September.

The BBC reported on 7 September 2005 that the group responsible for the blockades in September 2000 was threatening to stage protests at oil refineries from 0600 BST on 14 September 2005 unless reductions in petrol prices were made. Petrol prices had risen due to decreased world supply after Hurricane Katrina forced the evacuation of a number of American oil rigs and refineries.

Newspapers reported that on 10 September 2005, the UK government had drawn up contingency plans to maintain the supply of fuel, including using 1000 army drivers to operate tankers and to introduce fuel rationing [4].

As a result of public planning caused by the announcements of plans to stage protests at refineries and potential fuel rationing, by 1300 BST on 12 September 2005 long queues, or lines, formed outside petrol stations across Britain, with problems worsening the following day. Such queues often led to drivers having to wait over an hour to fill their vehicles with petrol. At its height, around 3,000 petrol stations were emptied of fuel.

However, on 14 September 2005, only a small number of protestors arrived at the refineries with no intention to start blockading the entrances. The UK Petroleum Industry Association said the day's protest had proved "thankfully amazingly quiet", with the largest event, attended by People's Fuel Lobby leader Andrew Spence, attracting just 10 protestors at its peak. At the Stanlow Refinery, which was blockaded in 2000, only two protestors attended the demonstration. The protest was subsequently ridiculed by the media and appeared to lack public support. These lower numbers may be because many lorry drivers who took part in the 2000 protest failed to attend and partly due to announced police measures, including plans to confiscate the vehicles and driving licenses of any protesters who acted illegally (BBC).

[edit] References

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