Summit called on 'petrol panic'

MINISTERS, officials and oil industry bosses will hold emergency talks tomorrow to plan for potential petrol shortages caused by price protests or terrorist attacks.

The Whitehall summit will examine strategies for coping with the fallout of a fuel crisis, including the possibility of imposing petrol rationing.

It comes as the price of a barrel of oil passes $40 - its highest since the build-up to the Gulf War 14 years ago.

This has forced forecourt prices above 80p a litre which sparked the fuel protests of September 2000. Ministers are said to be 'jittery' over the prospect of a repeat of those blockades.

Industry bosses, hauliers, local authorities, the security services and Government officials are expected to attend tomorrow's strategy session. Energy Minister Stephen Timms will host the day-long meeting at the Department of Trade and Industry.

Among the scenarios under discussion will be that of the Government using emergency powers to close all petrol station forecourts and impose rationing.

Under laws passed after the 1970s fuel crisis, the Government can also prioritise fuel for 'essential' users such as the Armed Forces or emergency services or take control of petrol pricing.

The decision to hold the meeting came amid warnings that petrol prices could top £4 a gallon this summer.

Analysts last night told motorists to expect another 7p a gallon (1.5p a litre) rise 'within days', pushing the average price of an unleaded litre to 83p (£3.77 a gallon).

Oil prices soared close to the all-time high last night, following fears the Opec cartel may not pump enough oil to meet rising world demand.

In New York, US light crude rose up 71 cents to $40.77 after peaking at $40.92 - which was just 23 cents below the $41.15 record seen in October 1990.

The real crunch for the Government will come in September, when Gordon Brown imposes an additional 2p a litre in duty which he pledged in the Budget. Motoring groups are urging the Chancellor to abandon the increase.

Nigel Humphries, of the Association of British Drivers, said: 'The Government had a stroke of luck after the last fuel protests when the price of crude oil went down. That eased the pressure on drivers and enabled the Chancellor to avoid cutting duty. However, that luck has now run out.'