Do we really have a fuel crisis?

What is going on with the rising cost of fuel? Is this the new normal or is this the culmination of political policies that will soon be corrected?

Do we really have a fuel crisis?
Photo by Zbynek Burival / Unsplash

The cost of fuel has recently increased to historic highs, not just in Europe but throughout the World, but what are the causes of these increases?

The image above does not include the second half of 2021 or the first half of 2022. In fact, as of today, I can only find information up to March 2022. The graph does indeed show that prices are at an all time high whichever way we look at it. The cost is going up in real terms even discounting the effect of inflation. If your income is not going up in line with inflation then even more so will you feel these cost increases impacting your bank balance.

In Europe the average home energy bill has jumped 41% in the last twelve months and the cost of fuel for private transport has increased by 38%. This in turn contributed to the overall inflation index which varied between EU countries from 4.5% to a whopping 15.6% in the year to March 2022. This has indeed placed a squeeze on family budgets.

Is Russia to blame?

The graph shows that energy costs were increasing even without the effects of the Russia-Ukraine conflict. The increasing costs of energy is largely caused by green policies.

Germany is simultaneously shutting down coal-fired power stations and decommissioning nuclear power stations. The alternative supplies are wind and solar power, supplemented by Russian gas. If the sun isn't shining and the wind isn't blowing then the gas power stations are fired up. So what happens when Russia gets sanctioned. Firstly, Germany finds a way to continue purchasing Russian gas despite the sanctions and as the pressure increases to boycott Russia, then they seek more expensive alternative supplies. That, and returning to coal power! Can you imagine? Germany has a green party in their parliament and they start turning coal-fired power stations back on.

However, a stark increase in fuel prices began in 2022. This coincided with Russia's invasion of Ukraine. Russia did not stop supplying gas to Europe or America and they did not suddenly increase the price. Instead what happened was that Europe decided that they did not want to buy gas from Russia and so they had to look elsewhere for gas. Russia already had a pipeline in place and was ready to open the Nordstream 2 pipeline to bring cheaper gas to Germany. The USA had been criticizing Germany since Donald Trump for being too reliant on Russia and for not buying gas from the USA. Suddenly the opening of Nordstream 2 was postponed indefinitely and Europe had to look to Saudi Arabia and the USA to meet their demand.  

This coincided with the USA blocking Russia from accessing the SWIFT international money transfer system. Europe could now no longer pay for gas from Russia in US Dollars and so they proffered Euros instead and Russia declined, preferring Rubles. The problem with Dollars and Euros is that the governments can deny access to the accounts on a whim. Somehow trade is continuing despite the difficulties outlined, but it all adds to the expense of receiving gas for heating and electricity production in Europe.

In the USA, Joe Biden decided to cancel the keystone pipeline permit. The pipeline was destined to double the capacity of oil that could be transported to US oil refineries from Canada. From these refineries come all types of liquid fuels along with plastics and fertilizers. Biden also put a freeze on federal oil and gas leases, as well as alienating Saudi Arabia and the UAE. All these factors came into play as gas prices in America rose to new highs.

Record Temperatures

As summer warms up, countries around the world are expecting heat waves. Record high temperatures have already been recorded in some places. High temperatures on their own are no cause for high fuel prices but combined with the increasing use of air conditioning and then we see why there may be an increase in fuel demand for the summer months.

Diesel Exhaust Fluid

Diesel Exhaust Fluid (DEF) is largely sold under the trademark "AdBlue" in Europe. Without it, modern diesel cars will refuse to start. The fluid itself is made from 32.5% urea and 67.5% deionized water. The problem here is that most countries in the world are net importers of urea with the two primary exporters being Russia and China! We've sanctioned Russia, but now China has suspended exports of Urea. So our ability to start our diesel cars is firmly in the hands of the Russians and Chinese. That's not a comforting thought.

Diesel Engine Oil

Mike Adams from Natural News has been reporting on a growing shortage of diesel engine oil. This is your engine oil with numbers like 10W-40 or 5W-30. This oil is typically replaced in domestic vehicles once a year or approximately every thirty thousand kilometres. By far the biggest consumers of engine oil are truckers. Commercial lorry drivers change their engine oil about every 10 weeks.

The supply of engine oil has been disrupted because of the restricted supply of additives that are required to make the oil. Keep an eye out for any further news on engine oil shortages, because if the delivery trucks stop delivering then we won't only have a fuel crisis but a food crisis and a supply chain crisis.

Summary

Fuel prices are increasing from a variety of factors, but we're also facing shortages caused largely by reliance on Russia and China for essential ingredients. The shortages, however, will have a knock-on effect on the entire economy as we see increasing costs across the board and shortages in food and other goods. It could get much worse but the solution is political. Pray for your politicians to make the right decisions for peace and prosperity to prevail instead of war and conflict.