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Boris Johnson Readies Up the Army as Heightened Demand Drains Petrol Pumps

September 27, 2021 by Forex Winner Leave a Comment

Boris Johnson Readies Up the Army as Heightened Demand Drains Petrol Pumps

Source: Bloomberg

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.

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