It’s been over a week since the announcement regarding the fuel crisis started. Warnings were given to not panic buy however, the warning fell on deaf ears as up to 90% of fuel stations ran out of fuel. This led to mayhem and endless queues for motorists to get fuel across the UK.
The moral panic created a rush for panic buyers and deepened a supply chain crisis that was caused by a shortage of HGV drivers. The lack of truck drivers has stemmed from Brexit, the COVID pandemic, delayed COVID test results and isolation rules, and sometimes poor and underpaid working conditions have all created turmoil through many supply chains, including food and fuel.
The government and retailers say there is enough fuel at UK refineries, but a shortage of drivers has slowed down the transport of it to some petrol stations.
It was announced, that on Monday 4th September 2021, roughly 200 military personnel will start deliveries to ease pressure and offer “temporary” support.
Other measures the UK government is taking to ease these pressures are; a suspension of competition law between oil companies, an offer of temporary visas to 5,000 foreign fuel tank workers and food lorry drivers, and speeding up the process to get an HGV driver license.
Analysts are expecting the price of fuel to rise in the near future. This could be down to a whole host of factors including; the current rise of world oil prices, and global post-lockdown demand.
What has this done to precious metal prices?
The Gas Crisis Affect on Gold Prices
Gold prices rose by £20.70 an ounce since the coverage of the fuel crisis (24th August 2021). There have been a few ups and downs throughout the week. Gold prices elevated from £1276.85 since the shortage was announced to £1297.55 an ounce at the end of the following week (1st October 2021).
The Gas Crisis Affect on Silver Prices
Silver prices rose by £0.08 an ounce since the coverage of the fuel crisis (24th August 2021). There have been a few ups and downs throughout the week, with the lowest being £16.02 an ounce. Silver prices elevated from £16.53 last week (24th August 2021) to £16.61 an ounce the following week (1st October 2021).