Diesel prices “could rise by 50%”

The proposal is to force the world’s entire shipping fleet to switch from using heavy fuel oil to using diesel, on the grounds that diesel is cleaner for the environment than fuel oil.

The switch would massively increase the world’s demand for diesel’

Martin Watson, President of the British Chamber of Shipping, described the proposal as “ill-considered and dangerous”. He added: “The move would have little or no effect on the environment, as power stations in China and India would buy up the heavy fuel oil no longer used by ships. But it would have appalling consequences for the world’s consumers.” He believes that the move would massively increase the world’s demand for diesel, requiring an increase in crude oil production equivalent to twice the entire annual output of Saudi Arabia. “Experts predict that the surge in demand would send the price of diesel soaring the price at the pumps would go up by 50%.,” he says. Watson continues: “The proposal would also push up prices of everyday goods. Ship-owners would have to fit new engines and fuel tanks, as well meet the increased fuel costs – all costs which would have to be recovered by charging more to ship the world’s goods. As 80% of all goods are carried by ship, this would inevitably force up the costs of food and consumer items in the shops.”

! www.british-shipping.org