FUEL CRISIS

NO RATIONING
Chancellor Gordon Brown dismissed suggestions that petrol could be rationed saying that contingency plans to do that would only come into effect if a major disaster ever hit Britain. The Chancellor said the Government would not take its own action to cut high pump prices, such as reducing duty. Instead he demanded the Organisation of Petroleum Exporting Countries (OPEC) should increase supplies by the end of the month to force down prices. (Source: The Sun)

PANIC-BUYING
Petrol stations in Derby are placing restrictions on the amount of fuel which can be purchased due to panic-buying. Asda, in Nottingham Road, Spondon announced it had placed a Ł20 limit on the amount of fuel purchased and Murco, in Stores Road, limited customers to 10 litres a time. Motorists queuing for fuel caused traffic chaos on roads leading to petrol stations. A spokesman for Sainsbury's, in The Wyvern, said, "We have enough petrol to go round. There'd be no problem if people stopped panic-buying."

IN EUROPE
Poland and Hungary is to cut fuel duty, Belgium is returning VAT on heating oil and France will give truckers tax credits.

FUEL CRISIS

Fuel Pump Ministers are discussing plans to introduce petrol rationing in an attempt to offset any threat to fuel supplies. A DTI document said: "Specific measures... may include a restriction in some form of the amount of fuel a motorist is able to purchase at any given time." The document added: "Measures may also be introduced to discourage motorists from the practice of topping up their fuel tanks at frequent intervals. The secretary of state may also restrict the hours during which filling stations may sell fuel." Ray Holloway, director of the Petrol Retailers Association, warned that the Government might have to introduce a system of "minimum purchases" to stop motorists panic-buying. He said, "I would not call it rationing. I would call it rational buying. This would prevent motorists from emptying stocks while the Government addressed prices. There is no pressure on the supply chain because there is an adequate quantity of motor fuel available in the UK. This is not an oil crisis. This is actually perhaps some protesters wanting to bring to Government's attention the retail price of fuel at this time which is not actually being created by any rise in tax." (Source: Mail on Sunday)

An emergency plan that could put Britain on a three-day week and have motorists banned from driving has been drawn-up by ministers in an attempt to cope with a new fuel crisis. The secret document, which proposes petrol rationing and police guards at pumps, came to light as protesters vowed to step up their national campaign to fight the spiralling cost of fuel.

The contingency proposals, contained in a Department of Trade and Industry document, would see sporting events such as Wimbledon cancelled, lower speed limits to reduce petrol consumption and a cut in the cost of public transport. The report, called the Downstream Oil Emergency Response Plan, picks out 700 petrol stations around the country to supply fuel to those who need it most urgently.

If a crisis became severe, supply would be reserved for, among others, the Armed Forces, emergency services, prison service officers and nuclear power stations. Fears that public order could collapse as civilians fought it out for any remaining fuel could even mean the introduction of police guards at petrol stations.

If the shortage was so acute only those in priority groups would be allowed to use their vehicles and oil tankers would be seized by the Armed Forces. A DTI spokesman said that while he was not prepared to comment on a leaked document, he accepts civil servants do work on “worse case scenario” contingency plans.

The document emerged as plans were unveiled for a new wave of militant fuel protests. Four years ago, the country was brought to a near standstill as fuel depots and petrol stations were blockaded by farmers protesting about the rise in fuel. David Handley, the chairman of Farmers for Action which helped organise the protests in 2000, insisted that public opinion was behind trying to force the Government to cancel a planned 1.4p a litre price hike in fuel duties.

He said that while international markets responded cooly to Opec’s decision to increase the number of barrels by just 2 million a day, it remains up to Gordon Brown, the Chancellor, to cut the massive tax on fuel. “Public support is coming in from all directions,” Mr Handley said. “We will wait to see what the Government does on this issue. This will obviously snowball. Once one protest starts others will follow. If ordinary individuals want to help then that sends a strong message to the Government.” (Source: Times Online)

BP reported record annual profits of Ł11.04billion for 2005. Tony Woodley, general secretary of the Transport and General Workers Union, said, "With BP’s multi-billion profits based on rocketing oil prices, there should be no doubt the oil companies have profited whilst our pensioners have suffered. If there is any justice in this world, then a part of those excess profits should go towards helping those whose pensions have been robbed." (Source: The Sun, Feb/06)

Higher oil prices helped BP chief Lord Browne pocket Ł6.5million in basic pay, bonus and shares in 2005. His pension fund rose to Ł20million guaranteeing him Ł1million a year at retirement. Shell boss Jeroen van der Veer's basic pay increased by 19%, and he landed a Ł4million windfall with pension benefits. They could have got even more if they had earned their full bonuses. (Source: Daily Mirror, Mar/06)