As the summer driving season approaches, Shell has warned that motorists in the US and Europe may face a severe shortage of petrol and diesel. CEO Wael Sawan noted that the energy crunch is moving through different fuel categories with clinical precision. After hitting jet fuel and diesel, the “summer surge” in demand for gasoline could push the market to a breaking point.
This impending shortage is rooted in the strategic importance of the Strait of Hormuz, which remains largely inaccessible to oil tankers. The channel is responsible for a massive portion of the world’s daily oil and gas trade. Without these deliveries, inventories in the West will continue to deplete just as travel demand typically peaks.
Historically, the summer months see the highest consumption of petrol as families take to the roads for vacations. However, with supply lines throttled, the usual increase in production may not be possible this year. This creates a supply-demand imbalance that could lead to record-high prices at the pump or even local fuel dry-outs.
The significance of this development cannot be overstated for the retail and tourism sectors. High fuel costs typically reduce discretionary spending, which could slow down the post-winter economic recovery. Shell and other energy leaders are now being consulted by governments on how to release strategic reserves.
As April nears, the focus remains on whether diplomatic channels can reopen the Gulf shipping lanes. If the 15-point peace plan currently under review fails to gain traction, the “driving season” could be defined by scarcity. Stakeholders across the energy sector are preparing for a high-stakes spring transition.