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Panic as UK pumps run dry
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September 12, 2000: 9:24 a.m. ET
Gas stations running out of fuel as protestors cut off supplies across Britain
By Staff Writer Abid Ali
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LONDON (CNNfn) - Gas stations across Britain were close to running dry Tuesday as protestors blocked tanker deliveries to highlight the rising cost of fuel, and motorists lined up to fill their tanks and any other containers.
Prime Minister Tony Blair, meanwhile, rushed back to the capital to host an emergency meeting to decide how to keep fuel flowing.
Shell Transport & Trading Co., which operates 1,110 filling stations across the country, told CNNfn.com Tuesday morning that 620 of its stations were "either running dry or facing shortages." Tankers at its only U.K. refinery at Stanlow, near Liverpool, stayed off the road in the face of protestors demanding the government slash duty on petrol.
 A liter of unleaded gasoline costs about $1.21 in Britain, of which some 75 percent is made up of taxes and duties. Protesters want the government to cut those levies to bring down fuel prices.
"This is the worst crisis for more than 25 years," said Jonathan Simpson, a spokesman for the Royal Automobile Club, a car breakdown service and lobbyist for its motorist members. "We're suggesting the government immediately cut duty on petrol by at least 3 to 4 pence."
Esso, a unit of Exxon Mobil Corp (XOM: Research, Estimates), said more than half of it 1,620 British stations were running dry, while BP Amoco PLC (BP-) said about two-thirds of its stations were closed. Texaco Inc. (TX: Research, Estimates) said nearly 70 percent of its stations in Britain were now dry.
British protestors, mimicking similar actions that started last week in France, have rapidly brought the flow of supplies almost to a halt. Lines of cars formed overnight as motorists sought to stockpile fuel. Businesses are warning the government of imminent crisis.
"The government has the ability to invoke emergency powers to make sure essential services have enough fuel," a Downing Street official told CNNfn.com.
In London, Brent crude for October delivery rose 9 U.S. cents to $33.71, still within sight of its 10-year high of $34.55, reached last Thursday. After a brief drop Monday morning, prices carried on rising despite the weekend decision by the Organization of Petroleum Exporting Countries to pump 800,000 more barrels per day.
Airlines face shortages?
While motorists lined up around the block for gas, Europe's No. 1 airline British Airways PLC told CNNfn.com that fuel stocks at regional airports were running low. Scotland's two main airports, Edinburgh and Glasgow, as well as Newcastle in northeast England, had just enough fuel to last until Wednesday.
"Some airports have enough fuel for 12 days, others a lot less," a BA spokesperson said. "We're reviewing the situation moment by moment."
London's Heathrow airport, which is owned by BAA PLC, the world's biggest airport operator, is unaffected by the current crisis as aviation fuel is pumped directly from refineries.
Deputy Prime Minister John Prescott told reporters outside the prime minister's residence that it was the responsibility of the oil companies to distribute fuel, but the government would hold talks with them to make sure deliveries are made.
'Drivers threatened'
Shell said it wouldn't be drawn into a political wrangle. It said its drivers had been threatened, and "on that basis we won't force them out the front door."
Britain's No. 3 supermarket chain Asda, a unit of Wal-Mart Stores Inc. (WMT: Research, Estimates), said customers had been buying more gasoline than usual but they have not been experiencing panic buying, as had been reported.
More than 100 of Asda's 146 gas stations had closed. The company said it believed it had enough fuel to keep its fleet of delivery trucks going until the weekend.
 Drivers attempting to buy gas at a petrol station in central London expressed sympathy with the protesters. Real estate landlord Peter Chaplin said he was forced to buy "the wrong kind" of gas for his car after he couldn't find a gas station still selling unleaded gas despite driving 50 miles. Still, he said he agreed with the protesters.
The calls for lower gas prices joined voices that have been lobbying for cuts over several weeks, including that of The Sun (above), a mass-market national daily owned by Rupert Murdoch's News Corp. (NWS: Research, Estimates)
"The government approved taxes on fuel to stop people from driving their cars, and now it's going to backfire," said Chaplin. "The country's going to grind to a halt and it's their fault."
Taxi driver John McDonald said he might lose a day or more's earnings if he couldn't find a gas station open later Tuesday.
"If I don't get any on the way home, I probably won't come out tomorrow," said McDonald, who also criticized the government. "It's about time they did something about it." 
-- Staff Writer Tara Duffy contributed to this report
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