Lowering speed limits among contingency plans to curb UK oil demand

Lowering speed limits to minimise fuel consumption is among potential contingency plans being drawn up by the UK government as the crisis in the Middle East threatens global oil supplies.Sources stressed that there is no shortage of fuel in the UK, but said that officials in the Department for Transport were working with the Department for Energy Security and Net Zero (DESNZ) on an analysis of what measures could be taken to curb oil demand.The world’s energy watchdog has advised its government member states, including the UK, to consider lowering road speeds and limiting when cars can drive.The International Energy Agency (IEA) recommended a raft of Covid-style emergency measures, including working from home, to cope with soaring oil prices and looming supply problems triggered by the US-Israel strikes on Iran.The agency said governments should encourage shared transport, whether public or car-pooling, and efficient driving, and tell citizens to avoid air travel where possible.The DESNZ declined to respond directly, but is understood to be confident that the UK has a diverse and resilient fuel supply, with the IEA’s advice encompassing its member states across the world. The agency has advised diverting liquid petroleum gas from transport use to ensure enough remains for essential domestic use such as cooking, with shortages already affecting countries such as India.The UK’s national emergency plan for fuel shortages was last updated by DESNZ in 2024, and includes measures such as petrol rationing and limiting the opening hours of filling stations.Under existing plans to restrict consumption in the event of a severe squeeze on supplies, critical service vehicles would be given priority for fuel, and ministers would also direct supplies to ensure public transport keeps running. But private drivers would have restrictions on how much fuel they could buy per visit to a filling stations, and pumps could be closed overnight.The government could ultimately allocate how crude oil and other imported oil products are distributed within the UK.While these measures would only be activated in a severe national fuel shortage, the IEA measures could help limit demand before supplies are threatened.A government source said that several of the levers to be pulled would be from the DfT. Slowing down road traffic by up to 10mph would be easily implemented on motorways, where signage is also adjusted electronically on major routes.Fuel consumption drops at lower speeds. Parts of England have previously implemented tighter limits in an effort to reduce pollution, including holding traffic on the M6 near Birmingham to 60mph to cut emissions.The IEA also proposed restricting when private cars can drive into cities: a measure taken in the past decade on several occasions by Paris, as well as places such as Delhi and Athens.The high coverage of traffic cameras across its road network gives the UK authorities the technical capability to enforce such a scheme, although it would be likely to prove politically contentious, with the Labour leadership nationally having been at pains to distance itself from London’s ultra-low emission zone (Ulez).National Highways, which has more than 4,000 monitoring cameras across the strategic road network, declined to comment. Transport for London, which has 1,500 number plate recognition cameras, does not have the legal powers to implement a rotation scheme, and a spokesperson said any potential policy would still take considerable technical work and time.A Shell petrol station in Dedworth, Windsor, Berkshire. The average price of a litre of unleaded petrol is likely to reach 150p by Easter. Photograph: Maureen McLean/ShutterstockDrivers will already be induced by higher petrol prices to use their cars less. The RAC said petrol prices were now up 9% since the conflict began and diesel up 17%, adding £6.40 to the cost of filling a typical family car with unleaded or £13 on diesel. It said further rises looked inevitable, with the average price of a litre of unleaded likely to reach 150p by Easter.DESNZ wants to avoid any potential petrol panic-buying, which was last seen in the UK in September 2021 and was caused by fears that a shortage of HGV drivers could cut supplies.The department has pointed to fuel retailers’ advice to fill up as normal, and says there are no issues reported with fuel production and imports are continuing across the UK as usual. More than half of the UK’s imported crude oil comes from the US and Norway, and last year refinery production of petrol exceeded demand.Jack Cousens, the head of roads policy at the AA, said: “Drivers should be assured that there are good fuel supplies and people should not change their fuelling habits. Nevertheless, advice to drive as efficiently as possible is something that drivers could adopt at all times to save both fuel and money.“Reducing speed and braking less harshly are beneficial. Similarly, linking journeys together contributes to saving fuel.”The last government stepped in with public information campaigns when soaring oil prices in the wake of the Russian invasion of Ukraine drove up domestic bills – although the then energy minister, Grant Shapps, drew a mixed reaction with his own starring roles in videos on energy saving.Richard Holden, the shadow transport secretary, said Britain should be producing more of its own energy and protecting industry: “While the rest of the world races ahead, Labour are telling people to drive slower, stay at home and use less energy – exactly the kind of eco zealotry people are fed up with.“Rather than backing domestic production, Labour is flirting with the idea of rationing how people live their lives.”The Green party transport spokesperson, Siân Berry, said: “The truth is Britain is particularly exposed to energy shocks because it remains heavily reliant on fossil fuels, so global warnings certainly apply here. We would be in a very different position if the Labour government had learned the lessons of the last shock four years ago and properly invested in renewables.”Meanwhile, some businesses indicated they were likely to resist any calls to allow more home working. Many companies have increased post-pandemic workplace attendance requirements in recent months and would be reluctant to reverse this unless mandated by ministers.A representative for large UK companies, who declined to speak publicly, said employers in the manufacturing sector would be unlikely to accept more remote working unless it became official government guidance and would be concentrating on how to keep their factories running.Employers remain wary of reinstating Covid-era policies that created workplace friction between shopfloor staff and white-collar colleagues who could work remotely, and potential employment rights issues in bearing increased fuel or commuting costs.David D’Souza, of the CIPD, an HR professional body, said that fuel posed the “latest shock” for employers, adding: “Organisations will be evaluating their ability to be flexible in the short-term, while also considering possible scenarios should the challenge become more pressing.”