Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Dutch govt has no crisis plan for oil, diesel shortage, auditor says

Published 29/09/2022, 15:51
Updated 29/09/2022, 16:05
© Reuters.

AMSTERDAM (Reuters) - The Dutch government does not have a crisis plan in case of an oil or diesel shortage, the Netherlands' Court of Audit said in a report on strategic reserves published on Thursday.

The independent auditor's report noted that the government is anticipating stress on the diesel market after Russian oil is banned from European ports on Dec. 5 as part of a sixth package of sanctions levied on Moscow following its invasion of Ukraine.

"A shortage of diesel might arise due to the upcoming sanctions against Russia," a summary of the 60-page report said. "At this moment there is no national crisis plan for oil prepared, as there is for gas and electricity."

The report noted that crucial parts of the economy such as the trucks that supply grocery stores run on diesel, but in case of a physical shortage, it is not clear which users would have priority.

A spokesperson for the Court of Audit said the report was intended as a factual observation, not as a criticism of policy.

Energy Minister Rob Jetten, in response to the report, said his ministry has begun working on an oil crisis plan, but that individual players and organizations in the sector already have "playbooks".

Russian oil accounted for about 35% of Dutch imports in 2021, and major refineries in Rotterdam have been customised to make diesel from heavy Russian crude.

The Netherlands Petroleum Stockpiling Agency (COVA) has a strategic reserve of oil holding about 90 days of national consumption, in line with international obligations.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

However tapping those reserves, as happened twice this year, has only a temporary effect.

"It is, according to COVA and the Ministry of Economic Affairs, very much in question whether Dutch refineries are capable of obtaining enough heavy raw oil to satisfy continental European diesel demand," after Dec. 5, the audit report said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.