Fuel starts to flow again as UK counts cost

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Fuel starts to flow again as UK counts cost By Our International Staff Published: September 14 2000 20:11GMT | Last Updated: September 15 2000 00:19GMT

Fresh fuel supplies began to reach petrol stations in the UK on Thursday night as Tony Blair, the prime minister, counted the cost of a week-long protest against high fuel prices that threatened to paralyse the nation and that seriously damaged his reputation for competent government.

Protesters lifted pickets at oil refineries and fuel depots, claiming the moral high ground.

But the prime minister warned that the crisis was not over. Oil companies said they hoped to begin restoring supplies to service stations within two days, but it could take weeks before the system is back to normal.

Protests across Europe, which began in France and spread to Germany, Belgium and the Netherlands followed the recent surge in crude oil prices on world markets. The oil price increases came on top of already high fuel taxes in Europe which in Britain account for more than 70 per cent of fuel prices.

The crisis has prompted a move among the world's leading industrial nations to forge a joint position on soaring oil prices and the euro, dollar and yen exchange rates, ac cording to government officials in Berlin.

They said initial contacts between members of the Group of Seven industrial nations have already taken place on the level of the officials, or "sherpas", who prepare summit meetings.

In Britain, the Treasury confirmed Gordon Brown, the UK chancellor, will also use the forthcoming G7 meeting of finance ministers in Prague to push for a statement demanding action to deal with the rise in oil prices. He is expected to press G7 counterparts to apply pressure on Opec oil-producing nations to raise output to drive down the price of crude.

The British protests severely tested Mr Blair's authority. Despite his sharp condemnation of the action, opinion polls showed widespread public support for the truckers' actions.

Mr Blair rejected a short-term cut in fuel taxes - although the French government conceded cuts to its protesters. "Governments should listen, but governments should also govern," he insisted on Thursday.

However, protest leaders threatened to return to the blockades if the government did not take action on fuel taxes within 60 days. They expect concessions to be made in a pre-budget statement due in November.

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-- Martin Thompson (mthom1927@aol.com), September 14, 2000


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