Southern Italy faces risk of fuel shortages as Ilva protests impact Eni refinery

Ilva Labour Dispute Triggers Fuel Shortages Across Southern Italy’s Eni Network

Labour Dispute and Its Impact on Fuel Supplies

Background of the Ilva Steelworks Dispute

ROME, Oct 14 (Reuters) - A labour dispute over the future of Italy's troubled former Ilva steelworks is threatening fuel supplies across parts of southern Italy after protesters disrupted operations at ENI's refinery in the city of Taranto.

Union Actions and Worker Protests

Trade unions representing former Ilva workers on Tuesday announced a further 48 hours of strike action, protesting against a government plan that they say leaves thousands of employees facing prolonged reliance on furlough schemes rather than a long-term industrial solution.

Wider Disruption Beyond the Steel Plant

The unrest widened beyond the steel plant in Taranto when protesters blockaded access to Eni's nearby refinery, a fuel hub serving the southern regions of Puglia, Basilicata and Calabria.

Fuel Shortages at Service Stations and Airports

Eni said late on Tuesday that more than 50 of its roughly 300 service stations supplied by the refinery had run out of fuel, while its Enilive unit had declared fuel shortages at the airports of Bari and Brindisi.

Potential Shutdown of Refinery Units

The energy group warned that prolonged disruption to supplies of technical gases and other materials needed to run the plant could force a controlled shutdown of refinery units.

Aviation Fuel Restrictions and Airport Operations

Initial aviation notices warning of low Jet A1 fuel stocks were later upgraded to say fuel was unavailable at Bari and Brindisi, except for limited supplies reserved for emergency, rescue, hospital and state flights, with restrictions set to remain in place until October 16.

Airport authorities said on Wednesday that flights were operating normally, adding that the situation was being monitored closely.

Government Response to the Crisis

The fuel concerns come as the government seeks to contain the fallout from the Ilva crisis. At a cabinet meeting on Tuesday it extended special furlough measures for former Ilva workers and contractors until June 2027 and introduced hiring incentives for companies taking on ex-Ilva employees.

Measures to Maintain Steel Plant Readiness

The cabinet also approved measures aimed at keeping the steel plant's blast furnace area in a state of readiness while awaiting an October 20 ruling by Italy's Supreme Court on whether key facilities must be shut down.

(Reporting by Giselda Vagnoni in Rome and Francesca Landini in MilanEditing by Keith Weir)