* 'It's crazy,' driver says at gas station
* Army tanker drivers to be deployed if needed
* Trucker shortage has hit supply chains
* Some signs problem is easing - minister
* Retailers caution about Christmas supply
(Adds retail group latest, German industry, sterling)
By Michael Holden, Ben Makori and James Davey
LONDON, Sept 28 (Reuters) - Britain's transport minister
pleaded with motorists on Tuesday to stop filling up old water
bottles with fuel at gas stations after panic buying left pumps
dry across major cities and prompted the government to put the
army on standby.
British drivers hunted for hours or sat snarled in queues to
fill their tanks; dozens of forecourts were closed with signs
saying they had no petrol or diesel, Reuters reporters said.
A post-Brexit shortage of truck drivers, exacerbated by a
halt to truck-driving-licence testing during COVID lockdowns and
people leaving the haulage industry, has sown chaos through
supply chains, raising the spectre of shortages and price rises
in the run up to Christmas.
Britain put a limited number of military tanker drivers on a
state of readiness to be deployed to deliver fuel if necessary.
Transport Secretary Grant Shapps and some gas station
operators reported the situation appeared to be easing as
reserves at some gas stations had been replenished.
"We're starting to see very tentative signs of stabilisation
which won't yet be reflected in the queues," Shapps told
reporters.
"The sooner we all return to our normal buying habits, the
quicker this gets resolved - and I do appeal to the public to do
that. In particular, no more water bottles at petrol stations:
its dangerous and not helpful."
Industry groups said the worst of the shortages seemed to be
in London and other English cities where many gas stations
remained closed. Fights broke out at some forecourts as drivers
jostled for fuel and pictures on social media showed some people
filling up old water bottles with fuel.
There have also been growing calls for medics, healthcare
staff and other essential workers to be given priority to fill
their cars to keep hospitals and social care services
running.
An air of chaos has gripped the world's fifth-largest
economy in recent weeks as the shortage of truckers strained
supply chains and a spike in European wholesale natural gas
prices tipped energy companies into bankruptcy.
Retailers, truck drivers and logistics companies have warned
that prices for everything from energy to Christmas gifts will
have to rise.
"I can't believe it - it's crazy," said David Scade, a
33-year-old delivery driver who drove for hours searching for
fuel in London.
"They keep saying there is no shortage but I suppose
everyone is panicking now."
STILL QUEUING
The Petrol Retailers Association (PRA), which represents
independent fuel retailers who account for 65% of all the 8,380
UK forecourts, said there were early signs the crisis was
ending.
"We have conducted a survey of our members this morning and
only 37% of forecourts have reported being out of fuel today.
With regular restocks taking place, this percentage is likely to
improve further over the next 24 hours," said Gordon Balmer, the
PRA Executive Director.
The government on Sunday announced a plan to issue temporary
visas for 5,000 foreign truck drivers. But some Polish hauliers
said that offer was laughable and that few would be likely to
take it up, and the German freight industry said drivers who
left after Brexit would not go back.
Hauliers, petrol stations and retailers say there are no
quick fixes as the shortfall of truck drivers - estimated at
about 100,000 - is so acute, and because transporting fuel
demands additional training and licensing.
Ministers want businesses relying on truck drivers to pay
more and offer better conditions, rather than count on cheap
foreign labour. But hauliers and other businesses say that can
only be a long-term fix, while in the meantime it will mean
prices increasing and the risk of a prolonged rise in inflation.
Analysts cited concerns about the impact on the economy if
fuel shortages persisted as a factor in sterling falling by more
than 1% versus the dollar and the euro.
The British Retail Consortium (BRC) urged the government to
broaden the size and scope of the visa scheme to attract the
truckers needed to keep Christmas supplies on track.
"It will take many months before there are enough new
British drivers to cover the shortfall," said Andrew Opie,
director of food and sustainability at the BRC.
(Additional reporting by Joice Alves and Rene Wagner in Berlin;
Writing by Michael Holden and Guy Faulconbridge; editing by
Alistair Bell, Philippa Fletcher and Nick Macfie)
