Warning to Brown on petrol tax rise

Pressure is mounting on Gordon Brown today to ease the pressure on motorists after oil prices continued to reach record levels.

Ministers fear a fresh bout of fuel protests and want the Chancellor to scrap plans for a 10p-a-gallon rise in petrol prices this September.

The call came after the price of crude oil reached a 20-year high of $41.65 a barrel. It has seen forecourt prices nudge towards 88p a litre (£4 a gallon) - 8p higher per litre than the price which provoked the crippling protests four years ago.

With blockage organisers threatening to repeat their action, a Whitehall crisis summit was held last week.

Independent analysts claim the Chancellor could easily afford to scrap the rise because the soaring cost of crude has brought the Exchequer an unexpected windfall.

But Treasury officials said weekend reports that the Chancellor was planning to drop the additional fuel duty were "wide of the mark".

"It is a long time between now and September," said one official. He said Mr Brown was hoping to exert pressure on Opec - meeting on Friday - to increase production.

"We have been working hard in the international sphere alongside the Americans to remind Opec countries of their commitments and target price ranges," he said.

He added: "We're hoping to make progress quickly so that people can see that the price at the pump is starting to come down." It could be a week before motorists notice any difference in forecourt prices.