The petrol station is located in Vale, Guernsey (Image: Getty)
A Guernsey petrol station has started rationing fuel after experiencing an unexpected influx of customers amid rising global oil prices. Whiteway Motors, located in Vale, was selling unleaded petrol at 156.5p per litre, slightly below the island's average price of 163.5p, according to Guernsey Fuel and Oil Watch. According to its website, Whiteway Motors is currently the “best on the island for fuel prices.”
The spike in demand follows the ongoing conflict in Iran, which has disrupted oil shipping routes, driving global fuel costs higher over the past month. Iran has effectively blocked the Strait of Hormuz, which carries 20% of the world's oil and liquefied natural gas supplies and around 40% of Europe's jet fuel supplies.
READ MORE: Energy bills set to soar by £288 as Iran war rages
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Drivers have rushed to fill up their cars (Image: Getty)
Fatih Birol, the executive director of the International Energy Agency (IEA), said the world is facing a worse energy crisis than the two 1970s oil crises and the war in Ukraine combined.
Andre Whiteway, the station owner, told the BBC that the station had been “bombarded” with customers on Tuesday. To ensure all customers could access fuel, he decided to limit how much each person could purchase.
He told the news outlet: “We've got like 13,000 liter capacity of unleaded.
“Over the weekend, we were busy, ordered the fuel yesterday but they couldn't get here till this morning so we had to just be fair to others, we rationed it just to make sure everybody had fuel till today.”
Despite global price increases, Mr. Whiteway said he has been able to maintain relatively low prices because his supplier has not raised costs from “ship to ship.”
He said: “So what they pay for that fuel when it comes in, I get charged that. When the last shipment came in, there wasn't much increase, so I've managed to keep my prices where they are.”
Mr Whiteway described the surge in customers at his petrol station as “an understatement.”
He added: “We're just getting bombarded, really. I mean the quantity of fuel we are selling is just extortionate, really.”
The owner emphasized his focus on keeping costs manageable for drivers. With over 30 years of experience, the garage serves as both a local car dealership and a fuel station, providing a range of vehicles and petrol.
Island Energy has announced a 1.2p per kilowatt-hour increase in gas tariffs across the Channel Islands, effective Tuesday, April 7. Households on the most common standard tariff will see bills rise by around 5%, while businesses may also face higher costs depending on their usage.
The company said the hike reflects rising wholesale prices caused by the ongoing conflict in the Middle East.
Graeme Millar, chief executive officer of the Islands Energy Group, said: “The conflict-related volatility has caused a steep rise in the wholesale cost of gas and is a direct pass-through of the amount we are now paying to secure supply. We want to reassure our customers that Island Energy is not making additional profit from this temporary adjustment.
“Our hedging strategy – where we buy future volumes at pre-agreed prices – has helped to limit the extent of this increase and shield customers from even greater instability. However, it is important to be clear and transparent. If wholesale prices remain elevated as our hedged contracts expire, further price increases will be necessary.
“The reality is that reductions can only be considered when wholesale rates fall back towards pre-conflict levels. Only when sustained and genuine cost decreases occur can we safely reduce tariffs without risking instability in the future.”