UK petrol and diesel supplies could be “severely disrupted” after 160 workers at oil and gas firm Apache voted for strike action in a dispute over pay, the Unite Union has warned. The action could start this month, hitting the Forties and Beryl oil fields and affecting more than 29% of the UK’s oil supply and 30% of its gas.
Pay dispute triggers strike vote
Apache workers emphatically backed strike action after rejecting a pay offer that amounts to a real terms pay cut for many workers, ranging from a pay freeze to below-inflation increases.
Unite industrial officer Stevie Davies said: “Unite’s members are being left with no option but to take strike action. Any disruption to Apache’s platforms would have a direct hit on the Forties Pipeline and potentially severely affect the UK’s fuel supplies.”
Record fuel prices
The warning comes as petrol and diesel prices continue to rise as the Iran war drags on. Fuel analysis by the RAC shows diesel has risen to a record average of 200.01p a litre, meaning filling a typical family car now costs £110 – close to £32 more than at the start of the US/Iran war.
RAC head of policy Simon Williams said it was a threshold that “no-one wanted to cross”. He added: “This will be very challenging for households and companies that drive a lot of miles, from commuters, haulage and delivery firms, businesses with large fleets all the way through to sole traders. In a cruel twist, it’s diesel vehicles, which were once considered the most cost-effective option for lengthy journeys, that are now burning a hole in people’s pockets.”
Petrol costs and government pressure
Petrol prices have also risen, with a litre of unleaded now averaging 174.71p, around 42p more than at the start of the conflict. Filling an average-sized petrol car now costs £96 overall.
Williams added: “For an average 45mpg diesel car, the cost works out at an extraordinary 20p per mile, so a driver covering 10,000 miles a year is now spending £2,020 on fuel a year. Households will be tightening the purse strings, while businesses may have no option but to pass these additional costs onto customers.”
He noted: “The previous highest price of 199.09p seen in June 2022 is already becoming a distant memory as the conflict in the Middle East continues with no sign of a deal to reopen the critical oil and gas shipping route through the Strait of Hormuz.”
The RAC said drivers “will be looking to the Government” to assist with rising fuel bills by “lowering fuel duty further or reducing VAT in October’s budget”.
