UK govt holding talks on rising oil prices

Government talks will be held in the UK today on the increasing rise in oil prices as the threat of a repeat of the 2000 fuel blockages looms.

Industry bosses, hauliers, local authorities, security services and government officials were reported to be meeting at the Department of Trade and Industry ahead of possible price protests.

Oil prices have continued to rise, edging even closer to the record high set in the lead-up to the last Gulf War.

A barrel of crude now costs $41.10 (£23.09 / €34.76) in New York – five cents short of its record price – and 37.40 US dollars (£21.11 / €31.63) on London’s International Petroleum Exchange.

Motorists are paying more than 80p a litre on the forecourts following the 13-year-high crude oil prices.

Fears that oil installations in the Middle East have become terrorist targets, high demand in the US and production cuts by oil cartel Organisation of Petroleum Exporting Countries (Opec) are said to have driven up the cost.

The DTI denied that the emergency talks, said to be hosted by energy minister Stephen Timms, were taking place.

“There’s no such meeting taking place,” a spokeswoman said.

She added: ““What we do have taking place is a regular contingency planning exercise that has been planned for months. It won’t involve ministers.”

She added: “It’s not being done in response to any stories about fuel prices.”

One of the ringleaders of the last fuel revolt in 2000, North Wales farmer Brynle Williams, now a Welsh Assembly member, has warned that new protests against rising petrol prices are a “distinct possibility”.

Ray Holloway, of the Petrol Retailers Association, warned that petrol prices were likely to rise further if the crude oil cost stayed above 40.

“There are implications for pump prices about a month ahead. You’re looking at a rise of 6 to 7p.”

He added that the average price now was 81p a litre.

“The protest price in 2000 was 80p a litre – that’s 85p today with inflation.”