Fuel Oil News October 2019 | Page 4

News ‘Security of supply will be the key concern’ SPEAKING LAST MONTH WITH GUY PULHAM, UKIFDA’S CEO, FUEL OIL NEWS ASKED: S hould a no-deal Brexit take place; do you feel the industry is well- prepared to cope with the challenges this may bring? Guy Pulham – in respect of a no-deal Brexit, UKIFDA has ‘asked each member to talk to their suppliers and ask about their contingency plans’ OFTEC – building new relationships with government L etters regarding the importance of bioliquids to be included as an option in the home energy mix have been dispatched by OFTEC. Replies have been received from both the new minister of state for business, energy and clean growth, Kwasi Kwarteng, and Andrea Leadsom, under-secretary of state for energy and climate change. OFTEC was disappointed to learn that Aaron Gould has now left the BEIS Heat Team to take up a new role in the ministry of housing, communities and local government. OFTEC reports that ‘Aaron was one of the few remaining people within BEIS originally involved in DECC, and who could bring a degree of consistency and history to discussions.’ With his successor yet to be appointed, OFTEC remarks that this ‘creates a degree of uncertainty’. OFTEC will seek to build a relationship with Aaron’s successor as quickly as possible. This industry has the skills, knowledge and expertise to cope with most situations. I do have confidence in the supply chain – a supply chain which consistently performs even during the largest peaks of demand. Writing this in mid-September, the Operation Yellowhammer report has just been released. These papers talk about the worst-case scenarios of a no-deal Brexit leading to fuel shortages, and how smuggling across the Irish border could increase, (we have lobbied on the current smuggling issue). As a result, we are currently reviewing government plans and continue to work hard to ensure lines of communication are open between all parts of the supply chain – UKPIA and TSA for primary distribution issues – to ensure members are kept fully informed of the situation enabling them to update their customers. Having attended several Brexit meetings in London, we have continually been told that no disruption to imports is expected. The reality may be somewhere between the two. Our members mainly operate in secondary distribution moving product from primary locations to their own depots and/or onwards to end consumers. Security of supply will be the key concern. That is why we’ve asked each member to talk to their suppliers and ask about their contingency plans. We would also encourage members with depots to have a little more stock than usual in tank at the end of the October. The second stage of our ‘Get Winter Ready’ campaign will also be sent out in October – it will use Brexit as an extra reason to buy early this year. The balance is trying to get consumers to have a little more stock in tank through the end of October without causing unnecessary panic buying and thereby causing supply issues. TURN TO PAGE 13 FOR A FURTHER Q&A WITH GUY PULHAM 4 Fuel Oil News | October 2019 TANKER OF THE YEAR 2019 – ENTER BY 31ST OCTOBER!