Fuel theft in the United Kingdom has jumped as gasoline and diesel prices surge, driven by the Middle East war and a global fuel crunch, pushing more drivers to drive off without paying. Fuel crime prevention platform Forecourt Eye says the cost of stolen fuel has climbed since the war began, and retailers are turning to facial recognition technology this autumn to fight back.
Drivers across the United Kingdom have started filling up their tanks and leaving without paying as fuel costs surge. The crimes range from driving off without paying to claiming an inability to pay for fuel already pumped.
Fuel theft value jumps as war drags on
Data from fuel crime prevention platform Forecourt Eye shows drivers in the country have been stealing fuel worth the equivalent of almost $270,000 every day since the war between the United States and Israel and Iran began at the end of February. That marks a 24% increase in the frequency of fuel theft since then, the BBC reported, citing the company.
The value increase, however, outpaces the frequency increase because of the crude oil price inflation. Measured that way, fuel theft in the UK rose 48% from the five months before the war began.
Pump prices near 2022 highs
Data from RAC, the British roadside assistance leader, shows gasoline prices in the UK have gone up to 1.5997 pounds per liter, equal to $2.15, below the 2022 peak but well above the 2014-to-2020 average. Diesel, meanwhile, is closing in on its 2022 highs, with a liter costing 1.7897 pounds, or $2.41.
To counter the crimes, Forecourt Eye said it would partner with a facial recognition company to give fuel retailers access to information about fuel thieves, available this autumn.
A fuel crunch that runs deeper than crude
The Middle East war has caused a global fuel crunch that analysts warn is more severe than the disruption to crude flows out of the Persian Gulf. Gulf states export refined products as well as crude, and while they have found alternate routes for some of that trade, a decline in refining capacity elsewhere has kept gasoline and diesel supply tight.
Ukrainian drone strikes on Russian refineries also aggravated the crunch, causing temporary regional shortages, and Russia's diesel export ban has now been extended into next year. Before the ban, Russia used to export between 700,000 and 800,000 barrels a day of diesel — the fuel the industrial economy depends on most, according to Rabobank senior energy strategist Joe DeLaura, quoted by the Wall Street Journal last month.
U.S. refiners have responded by cranking up run rates, with utilization hitting 95% at Exxon and 97% at Chevron over the second quarter, while Shell reported 102%. Even so, crack spreads remain at record highs, a sign fuel prices will likely stay elevated regardless of how the war develops.
Energy Aspects' Amrita Sen made a similar point in July. According to Sen: "far tighter than crude markets".
Source: Oilprice.com
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