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Fuel rationing rumours denied

17th August 1973, Page 18
17th August 1973
Page 18
Page 18, 17th August 1973 — Fuel rationing rumours denied
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by CM reporter • Rumours suggesting petrol rationing was imminent in Britain were emphatically denied last week by the Minister for Industry, Mr Tom Boardman. The rumours created grave concern within the transport industry, the general consensus of opinion being that petrol rationing would almost certainly lead to restrictions in diesel fuel usage.

Mr Boardman, who was replying to reports that because of a world-wide fuel crisis the Government had formulated secret plans to distribute fuel rationing coupons to Post Offices throughout Britain, said that the rumours were completely untrue and totally unconnected with recent speculation about oil shortages.

However, Mr Boardman made it clear that contingency fuel rationing plans had existed since the last war and that these were continually being updated in order to meet any possible emergency, such as the Suez crisis in 1956, the last occasion when fuel rationing was introduced in Britain.

Reports of rationing arose after Mr William Price, Labour MP for Rugby, revealed that such rationing plans existed. He discovered details of these plans in a confidential memorandum issued by the Union of Post Office Workers which stated that the union had been involved in private discussions with the Post Office on arrangements to be made in the event of a critical fuel shortage. But despite the Minister's statement Mr Price believes there will be fuel rationing in Britain within two years. He said that although he found nothing unusual in the fact that fuel ration coupons had been stocked in strategic centres throughout Britain for many years, he found it interesting that the Government was reviewing its arrangements.

"I think there is something going on. Everybody knows there is a crisis of world fuel supplies," he said.

Some fuel industry experts, however, feel the outlook is even bleaker. Mr John Alexander, a director of Fuel Economy Consultants, of Manchester, which advises a number of large companies on the price and availability of fuel, said that there was a 50-50 chance that Britain would be facing fuel rationing this autumn. A report by the company to this effect was dismissed by the Government some weeks ago.

Mr Alexander told CM that one indication of a coming fuel shortage was the ever increasing price of oil. He pointed out that since May 1972 the price per ton of oil on the Rotterdam Spot Market had rocketed from $ 30 to $ 100.

Two other major factors were the difficult Middle East situation and the new competition from American buyers. America, said Mr Alexander, had an insatiable demand and the money to ensure that this demand was met. He went on to say that already there had been cases of British oils suppliers refusing to supply fuel to "casual" users.


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