The Dutch cabinet has activated phase one of the Landelijk Crisisplan Olie (national oil crisis plan) — marking the first time the plan has ever been triggered.
According to RTL Nieuws, the action plan addresses both a temporary and long-term oil shortage in the Netherlands.
What does phase one actually mean?
The National Oil Crisis Plan has four phases.
Now active, phase one is called “alertering” (alert).
According to the Ministry of Economic Affairs and Climate, a dedicated team will now keep a close eye on fuel-intensive sectors such as transport and agriculture, while international stock levels come under tighter scrutiny.
The strategic oil reserve can be tapped if needed, and public communications will be stepped up: a copy of the plan is already accessible on Rijksoverheid.
For now, phase one will have no direct consequences for citizens. That may only come during later phases.
Phase two is an “early warning” that prioritises fuel for certain users; phase three is “alarm,” at which point a state of emergency can be declared; and phase four is an outright oil crisis.
What does an oil crisis look like?
The plan’s later phases give a sense of what could follow if the Hormuz situation worsens.
According to NOS, possible measures include banning home delivery services (think Bol.com, Amazon, Uber Eats, etc.), driving at 80 km/h on the motorway, and car-free Sundays.
The European Commission also advises companies to establish at least one fixed day for working from home.
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The crisis plan also lays out the possibility of banning the Netherlands from exporting fossil fuels to Germany, Belgium, France, and the UK.
Meanwhile, under the Availability of Goods Act of 1952, factories that consume larger amounts of fuel could be on the receiving end of a production ban.
At the moment, there are no shortages and no restrictions. But the government is clearly signalling that it’s not taking any chances.
Why now?
The Strait of Hormuz, the narrow waterway through which 20% of the world’s oil exports pass, has reportedly been blocked again.
On Saturday, more than 20 ships passed through, according to news agency Reuters. This was the highest number of ships travelling through the strait since March 1.
That didn’t last.
Over the weekend, the US and Iran each accused the other of violating a ceasefire by attacking ships. An Iranian-flagged cargo ship was allegedly breaching the American blockade on the Strait of Hormuz: an American attack and Iranian retaliation ensued.
Oil prices are surging again by more than 6%, with prices in the Netherlands shooting up to €2.75 on the litre.
Have soaring fuel prices affected your daily life in the Netherlands? Let us know in the comments below.
Hi,because of this issue all prices will eventually go higher and I don’t know if the salary increase can keep up with inflation. Some companies they even pay less than last year for travel expenses.