Fuel supplies sufficient if panic buying avoided, industry says

The Government and the fuel industry have said they are confident the war in Ukraine will not lead to empty fuel pumps - but only if panic buying is avoided. Pic: Larry Cummins

The Government and the fuel industry have said they are confident the war in Ukraine will not lead to empty fuel pumps - but only if panic buying is avoided.

The Russian invasion of Ukraine has prompted some concern that supplies from the region could be impacted and cause shortages amid record-high prices. 

The Irish Road Haulage Association has written to Taoiseach Micheál Martin to express “deep concerns at indications of an imminent tightening of supplies".

However, a spokesperson for the fuel industry group, Fuels for Ireland, said that as long as spikes are avoided, there will be enough petrol and diesel for consumers. 

They added that the National Oil Reserve Agency (NORA) holds a 90-day stock of oil in case of an emergency. A Department of Environment, Climate and Communications spokesperson said that 85% of this oil is stored in Ireland.

As it stands, we have adequate supply to meet normal buying patterns and are confident that future supplies are secure, provided normal buying patterns are maintained," Fuels for Ireland said, adding that many fuel-intensive businesses hold their own reserves.

"In this moment, the Department is working with both the oil industry and the National Oil Reserve Agency (NORA) to monitor daily oil industry data including national and localised stock levels of petrol, diesel and kerosene.

"NORA holds 90 days of oil reserves to cover any emergency for re-supply through the commercial system. In addition to this, there are significant stocks outside the import infrastructure that are held by the retail and aviation sectors and by other economic operators who hold their own strategic reserves.

"In the very short term, ahead of future shipments, the supply system is working to ensure there are sufficient supplies in the days ahead and is confident it can meet normal daily demand. In this regard, major demand spikes are most unhelpful."

The Department of Environment said that NORA’s holding of 90 days of supply of oil is "generally held on a pro-rata basis, to the level of end-consumption for the various oil products" and that the Department "continues to monitor events on a daily basis".

Fianna Fáil's transport spokesperson James O'Connor told the Irish Examiner he would like to see NORA's capacity doubled in light of the current situation.

We need to double the capacity of the oil reserve beyond the 90 days. The price of oil is outside the control of government, but how we react isn't.

Mr O'Connor said he would now like to see agencies, such as the HSE, come up with plans to keep essential vehicles on the road if supply dips.

"It would be prudent to look at the storage capacity - there would be an expense there but the cost of the alternative would be massive," he said.

Mr O'Connor added that he had concerns about the supply of agricultural products, as well.

"My primary concern is for agriculture. We need to get a clear understanding of where supply is coming from in fertiliser and grain. I know people are working on it but speed is the issue. Once spring is gone, you lose the chance to plant crops."