Petrol Price Motors Towards GBP 6 a Gallon As Strike Looms

By HAZEL MOLLISON

FUEL prices in the Lothians have soared as high as GBP 1.25 for a litre of unleaded – around GBP 5.70 per gallon – as the crisis caused by the Grangemouth oil refinery strike deepens.

Garages in and around Edinburgh have continued to report motorists panic-buying and stockpiling fuel ahead of tomorrow’s walkout.

Thousands of city council staff, meanwhile, have been told to take the bus and share cars if possible to ease the strain on supplies.

Police said they have “ample fuel supplies” to cover the strike, but urged people not to call with queries about the ongoing crisis.

Price hikes at the pumps have continued despite a Scottish Government plea for businesses not to cash in on the crisis. Garage owners hit back saying they had no choice, as suppliers are raising prices and restricting deliveries.

The Grangemouth refinery has now been shut down in preparation for the 48-hour strike – which is expected to cost the UK economy GBP 50 million a day.

It is expected to take up to three weeks to become fully operational again, with more strikes threatened if Ineos management and the 1200 workers cannot reach an agreement over pensions.

Scottish ministers have urged motorists not to panic buy, saying the country has enough fuel to last until next month.

First Minister Alex Salmond said “enormous quantities” of petrol and diesel were being shipped to Scotland from Europe.

However, many filling stations in the Capital yesterday ran dry, with queues of up to 30 minutes reported at some forecourts.

John Hastie & Son in Prestonpans has raised the price of unleaded petrol to 124.9p per litre, an increase of 18p in two days.

Manager Mark Hastie said they had no choice after suppliers Scottish Fuels raised the wholesale price. He said: “We’re not making of a profit out off this. They are charging us 119.9p a litre. It’s harder on small, independent garages. We can only get supplies from some of the smaller suppliers.”

The BP Malthurst garage in Ratcliffe Terrace has raised its prices by seven pence per litre in the last week, with diesel now selling at GBP 1.23 a litre and petrol at GBP 1.11.

The manager, who asked not to be named, said: “We don’t have any choice. BP put the prices up.”

Shona Robertson, the owner of the nearby Links Garage, was selling unleaded at GBP 1.14, but expected she would have to increase it today. Customers are rationed to GBP 20 worth of fuel per visit.

She said:

“People are in a real panic. We’ve had three days worth of sales in just one day. Our staff have had people being very rude.”

The council said it had prepared a contingency plan to deal with any shortages. City chiefs said there was enough fuel to “keep Edinburgh moving” and council vehicles would not be affected.

In a memo, staff have been told to minimise “unnecessary car travel”.

It continued: “The industry has well-rehearsed plans to re-route fuel supplies from other sources.

“Bus companies have fuel to run services as normal and will continue to receive a guaranteed supply. Use the bus if you can.”

Prices At 8am today: For table see e-pages

(c) 2008 Evening News; Edinburgh (UK). Provided by ProQuest Information and Learning. All rights Reserved.