Swiss fuel shortage risk ‘very high’ as energy markets tighten, trade expert warns

The risk of fuel shortages in Switzerland is “very high,” warned Florence Schurch, secretary-general of the Swiss commodities trade association Suissenegoce, on Monday, as global energy markets become increasingly strained. “To be honest, the situation is really getting complicated,” Schurch told French-language newspapers Tribune de Geneve and 24 heures. She noted that concerns had already been raised in March, when the association warned that strategic reserves in several countries, including the Philippines, Vietnam, and Bangladesh, could begin running dry this month. Regarding gas supplies, Schurch described the situation as “serious,” noting that reserves typically accumulated during summer may prove insufficient, partly due to the destruction of a refinery in Qatar that is unlikely to be rebuilt soon.

Switzerland’s vulnerabilities

Schurch forecast a sharp rise in global food prices, though she noted the impact on Switzerland would likely remain more limited than in other countries. She said Switzerland stores its gas reserves abroad, particularly in Germany and France, warning that such dependence could become problematic during a crisis. “The COVID experience has taught us that, in emergency situations, international support can fail,” she said, recalling blocked mask supplies during the pandemic. Switzerland has only one oil refinery, which covers about 20% of national demand; the federal government may be prepared to pay higher prices if necessary to secure supplies.

Hormuz closure impact

Iran has closed the Strait of Hormuz since the US and Israel launched war against Tehran on Feb. 28. The US later imposed its own blockade on Iranian ports. Roughly one-fifth of global oil and LNG flows pass through the strategic waterway. Although a ceasefire is in place, maritime traffic remains heavily restricted.