UK: BP and Tesco RATION fuel and shut stations, supermarkets warn of food shortage

Downing Street is bracing for a new 'Winter of Discontent' after BP and Tesco RATION fuel and shut stations, supermarkets warn of food shortages and energy firms go bust as gas prices soar

Downing Street today signalled it is bracing for a 'winter of discontent' after BP and Tesco were forced to ration fuel and shut stations, supermarkets warned of food shortages and more energy firms went bust amid rising gas prices.

Number 10 said this afternoon that 'we acknowledge there are issues facing many industries across the UK' as the nation heads into the colder months.

The Prime Minister's Official Spokesman insisted there is no shortage of fuel and urged people to continue to fill up their vehicles 'as normal'.

The spokesman also insisted the UK has 'very resilient and robust' supply chains.

BP said it will restrict deliveries of fuel due to an ongoing shortage of HGV drivers, which has also impacted supermarkets and raised fears of Christmas disruption.

The oil giant is understood to have informed the Government that its ability to transport petrol and diesel from its refineries is being heavily impacted by the supply chain crisis.

BP's Head of UK Retail, Hanna Hofer, told the Cabinet Office last Thursday that it was important that the government understood the 'urgency of the situation' which she branded 'bad, very bad'.

Ms Hofer warned that the company had 'two thirds of normal forecourt stock levels required for smooth operations' and that levels were 'declining rapidly'. The restricting of deliveries is expected to begin 'very soon'.

Meanwhile, there have been reports of Tesco petrol stations closing or running out of fuel in Dorset, the Isle of Wight and Devon. ExxonMobil, which operates Esso, added that some of its 200 Tesco Alliance sites were affected.

The news is the latest sign of the UK struggling to cope with the shortage of HGV drivers and it is feared that winter could see Britain struggling to keep the lights on - or enjoy Christmas.

Avro Energy and Green yesterday became the latest energy firms to go out of business as soaring gas prices continued to batter the sector.

Wholesale prices for gas have increased 250% since the start of the year, and 70% since August, meaning firms are buying energy for less than they sell it to customers.

Nine firms have now ceased trading this year, with the head of regulator Ofgem warning more are likely to follow leaving 'well above' hundreds of thousands of customers in limbo.

Meanwhile, food supply chains have been placed under intense stress in recent weeks because of the shortage of around 100,000 HGV drivers - with empty shelves across many UK supermarkets as a result.

They were further damaged after two plants that produce 60 per cent of the UK's CO2 were shut down amid rising gas prices. CO2 is used for everything from the humane slaughter of chickens and pigs, to putting the fizz in soft drinks and creating packaging that keeps foods fresh.