U.K. Prime Minister Boris Johnson is looking to bring the army to solve an acute shortage of fuel, as panic-buying pressured gasoline stations to close shops. FTSE 100 Index down -0.059%, GBP USD up +0.28%
- The British government has already given in to industry demands to issue 5,000 short-term visas to truck drivers, yet business leaders and unions stated that it would not be enough.
- Fuel supplies have run dry at various sites around the country, threatening the ability of key workers to perform their jobs.
- The risk is that a long-drawn fuel crisis will hamper the post-pandemic recovery, placing more strain on already strained supply lines.
- Rachel Reeves, the main opposition Labour Party’s finance spokeswoman, criticized the “supply chain chaos” presided over by Johnson’s Conservatives, blaming it on a failure to prepare for Brexit.
- Even after the immediate crisis resolves, the U.K. will have a major challenge with truck drivers. Nearly 20% of vehicles in some fuel companies are inactive due to the driver shortage and other issues.
- Pressure on the fuel supply chain is also likely to heighten in the run-up to the peak Christmas season.