Motorists Face Increases Despite End of Strike

MOTORISTS were today warned petrol prices could soar even higher, despite the end of the Grangemouth refinery strike.

The price of oil hit a record high yesterday, but experts say this will take about six weeks to filter down to consumers.

It comes as workers returned to the plant in Grangemouth following a 48-hour strike. Supplies of petrol and diesel are still running low in some parts of Edinburgh and the Lothians. Many outlets are continuing to limit purchases to GBP 20.

Although the strike is over, it will take two or three weeks before the facility is back to full production. There is also still the possibility of a further action, with no sign of an end to the dispute over pensions.

The Unite union is meeting with the senior management of Ineos in London today.

UK Business Secretary John Hutton visited the site today and said: “There is a gap between the two sides that has got to be bridged – only the two parties themselves can reach an agreement. No- one can do that for them. But I hope there is now a mood to try and reach an agreement.”

Mr Hutton was joined at the refinery by Scottish Finance Secretary John Swinney.

Louise Doherty of petrolprices.com, a consumer website, said the current uncertainty meant even higher prices at the pumps. She said: “We expect it to get worse over the next six weeks. There may be a dip in the short-term, but we expect them to hit GBP 1.50 a litre by September. Edinburgh will be one of the first places to feel the increase, as prices are already fairly high.”

The price of petrol in the Lothians hit a new high at the weekend. One Prestonpans garage was charging GBP 1.25 a litre for unleaded.

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