Fuel Fury OPEC Boosts Production, But Europe Chafes at Prices

L O N D O N, Sept. 11  Protests over soaring fuel prices in Europe are spreading, shutting down fuel deliveries and hastening shortages and consumer panic-buying.

Belgian truckers brought Brussels to a standstill, parking vehicles across streets and hampering access to government buildings and European Union offices. And in a show of esprit de corps, many truckers sounded horns and stood by their rigs, drinking coffee and munching croissants. The fuel crisis is spreading across Europe as motorists cross borders to seek out fuel. Meanwhile, the governments of Spain and Greece are facing threats of a taxi drivers' strike. (Magellan Geographix/ ABCNEWS.com)

In northwest England, a blockade of Shells Stanlow refinery left more than 100 petrol stations dry over the weekend. Spreading protests and panic-buying appeared likely to cause more shortages. With the prospect of a severe winter looming, protests over rising fuel prices have been increasing since last week. French truckers and taxi drivers blocked roads to protest gasoline prices, while farmers in Britain mounted similar, if smaller efforts to disrupt traffic.

Elsewhere, Disruption and Threats Meanwhile, in Scotland, demonstrators brought traffic in Edinburgh to a standstill as farmers turned tractors into roadblocks. But British Prime Minister Tony Blair vowed he would not give into demands, in stark contrast to France, which last week approved fuel tax cuts. French truckers and farmers lifted their blockades over the weekend. Six days of protests had choked fuel supplies and disrupted air, bus and car traffic across France.

An opinion poll showed that 88 percent of the French sympathized with the protesters, taking some heat off the French government for responding to the crisis by cutting fuel taxes. Elsewhere in Europe, pump price protests spread. Italian fishermen occupied docks around the country and warned the government they would blockade ports if duties on diesel fuel were not reduced. Irish Prime Minister Bertie Ahern, faced with the threat of nationwide protests, today agreed to meet with truck drivers on Wednesday. The association representing Irelands 4,000 truckers threatened protest action if the government does not accept its demand for a 20 percent cut in diesel duty. A fuel boycott has erupted in Spain, and Greek taxi drivers are threatening to strike.

Fuel at Nearly $5 a Gallon European drivers are accustomed to paying as much as four times what Americans pay at the pump for gasoline. Fuel taxes can add as much as 80 percent to the retail price.

But European consumers have been hit with a one-two punch. Rising world oil prices paired with a fall in European currency sent gas prices climbing to almost $4.80 a gallon in some areas. Under pressure to reduce oil prices, the Organization of the Petroleum Exporting Countries made an official statement today, confirming the groups agreement to raise oil supply by 800,000 barrels per day in a bid to reverse runaway crude prices and avert a consumer scare over home fuel bills.

However, that statement also said OPEC was dismayed that consumer countries did not recognize the role of higher taxes pushing oil prices higher.

http://abcnews.go.com/sections/world/DailyNews/fuel000911.html

-- Martin Thompson (mthom1927@aol.com), September 11, 2000