Good morning and welcome to our ongoing coverage of the global economy, financial markets, the eurozone and business.
Britain’s oil crisis has deepened, forcing ministers to suspend competition law to help oil companies target gas stations running low, after days of panic buying.
After a meeting with oil companies and retailers on Sunday, the business secretary Kwasi Kwarteng agreed to temporarily exempt the industry from the Competition Act of 1998.
This rare move announced last night will allow companies in the oil industry to work together to keep service stations charged, sharing information and optimizing supply without running the risk of breaking competition rules.
He called the Downstream Petroleum Protocoll, should help fuel producers, suppliers, transporters and retailers prioritize delivering fuel to the parts of the country and strategic locations that need it most.
Brian madderson of the Gasoline Retailers Association has said it will help, telling BBC Radio 4’s Today show that:
… possibly allow suppliers to fuel their competitors’ sites … and if so, the greater flexibility that that would give the supplier industry would be very welcome. “
But, Madderson added, it’s not a game changer that will fix the crisis on its own.
Kwarteng said the move is part of “long-standing contingency plans” drawn up in the event of a serious disruption.
“While there has always been and still is a lot of fuel in refineries and terminals, we are aware that there have been some problems with supply chains. That is why we will enact the Downstream Oil Protocol to ensure that the industry can share vital information and work together more effectively to ensure that disruptions are minimized.
“We thank the HGV drivers and all the service station personnel for their tireless work during this period.”
It comes after days of panic shopping at some service stations, after a shortage of truck units in the UK caused problems in supplying fuel to the concourse, a situation that worsened as more concerned drivers turned to They were heading to refuel.
Last night, BP reported that almost a third of its British filling stations had run out of the two main types of fuel on Sunday, after several days of increased demand saw long snakes of cars outside the stations.
The government is now considering whether to deploy the military to move fuel from refineries to motorists.
Hundreds of soldiers could be rushed to deliver fuel to gas stations that are drying up across the country due to panic shopping and a shortage of drivers under an emergency plan expected to be considered by Boris johnson on Monday.
The prime minister will bring together senior members of the cabinet to scrutinize “Operation Escalin”, according to our political correspondent Aubrey allegretti Explain:
In a bid to prevent the crisis from deepening further, ministers, including Business Secretary Kwasi Kwarteng, Transportation Secretary Grant Shapps, and Interior Secretary Priti Patel, met at noon Sunday to discuss options, including Operation Escalin.
Conceived years ago while planning a no-deal deal BrexitIt would mean recruiting hundreds of soldiers to drive a reserve fleet of 80 tankers. It is understood that it would take up to three weeks to fully implement it, because some of those mobilized may already be in other deployments and others could be reservists. Escalin was touted as an option last week, but government sources downplayed the possibility of its activation.
Also comes today
Global investors will be assimilating Germany’s federal general elections. Center-left SPD and his candidate for chancellor, Olaf Scholz, have won 25.7% of the vote, which gives them a slight advantage over his center-right. CDU rivals, but both sides claim the right to build the next government.
The narrow result means that Angela Merkel could remain as chancellor for a while longer, while party leaders try to forge a coalition.
And Labor pledges to eliminate UK trade rates and undertake the “biggest trade tax overhaul in a generation.”
Shadow Chancellor Rachel Reeves will tell the Labor Party conference that the current system punishes entrepreneurs and business investment. Business groups have welcomed the move.
We will also get fresh checks on the global economy, with Germany’s central bank issuing its monthly report and American factories reporting their latest order numbers.
- 11 a. M. BST: monthly report of the German Bundesbank
- 12.45pm BST: European Central Bank President Christine Lagarde testifies in the European Parliament
- 1.30pm BST – August US Durable Goods Orders.