News item | 17-11-2022 | 14:03
The cabinet maintains a strategic oil stock that is good for 90 days of domestic consumption. This means that there is enough oil in stock to keep the vital processes going for 90 days. This is necessary because on 5 December the EU sanctions on crude oil from Russia will take effect. From that moment on, crude oil may no longer be purchased from Russia and imported into the EU by ship. Last year, about 33% of crude oil in the Netherlands came from Russia. Since the announcement of the sanctions, the market has been switching to imports of non-Russian oil.
From February 5, 2023, a total ban on Russian petroleum products will apply. Partly as a result of this, global oil prices are expected to remain high for the foreseeable future and may rise. No acute shortages for diesel or oil are expected.
Measures
The Netherlands uses Russian oil for the production of diesel and kerosene, among other things. Because the consequences of the sanctions on the world market are difficult to predict, this summer the government instructed the Central Agency for the Stockpiling of Petroleum Products (COVA) to increase the strategic diesel stock as a precaution.
Various ministries are now working out measures in case of scarcity and hence rising prices for the sectors that fall under those ministries. This mainly concerns the transport sector and shipping that use diesel. These measures are mainly aimed at reducing demand for private individuals and businesses.
National Oil Crisis Plan
In addition to the increase in oil stocks, the oil crisis plan will be updated. The current oil crisis plan was drawn up in 2016 and will come into force if shortages nevertheless arise. This plan focuses on managing oil or diesel shortages in vital processes and provides insight into the chain risks and the social effects. Scenarios are worked out in the plan and direction is given on what can be done per scenario. In addition to the various ministries and COVA, the relevant sector associations are also involved in the process. The draft crisis plan will be completed at the beginning of December 2022.
Oil market
The oil market has a more international character than gas and electricity and is not regulated. This limits the possibilities to manage a possible crisis situation. On the other hand, the oil market is very flexible, partly because of the many suppliers. This means that the oil market is better able to absorb the shortages.
The government has some tips listed how fuel can be saved as a result of the increased prices.
Entrepreneurs can access it sanction counter of the RVO for questions and advice about the sanctions on Russia and Belarus.