28/05/2008

Brown Talks Fuel With Industry Chiefs

The Prime Minister and the Chancellor are to meet oil industry leaders today to discuss spiralling fuel costs.

Yesterday lorry drivers staged protests to demand cuts on diesel to salvage the British haulage industry.

Police say that 100 lorries took part in the protests although there are reports that it was closer to 300.

Mr Brown has told The Guardian Newspaper: "I know that families up and down the country are feeling the impact in the cost of filling up at the petrol station and the rise in gas and electricity bills.

"Our goal that Britain becomes a low-carbon economy is now an economic priority as well as an environmental imperative."

He added that the "development of renewable energy sources must be accelerated and the efficiency of the oil market improved".

Liberal Democrat spokesman Vince Cable told BBC Radio 4's Today programme in regards to the 2p fuel duty rise: "We have to wait until the autumn and we have to see what conditions are like."

He added that "there's no point rushing ahead with a decision on that" and that "it may be that the world oil price will fall very substantially in the intervening months and the problem will seem to have dissipated somewhat".

The government is now under pressure from its own backbenchers to scrap plans to increase road tax on higher polluting cars.

Senior Cabinet officials have insisted that the Prime Minister is taking on board people's outrage at plans to increase vehicle excise duty - expected to affect almost 18 million people.

Mr Brown and Mr Darling will meet representatives of oil companies in north-east Scotland to establish what they need in order to increase production.

The Prime Minister has said that the winter fuel allowance, free insulation for over 75s and a £150 million programme to help poverty stricken people with fuel bills will all help the situation.

There are also plans to insulate another five million homes and give three million more access to free energy-efficient products.

In the US, oil has sky rocketed from $10 a barrel to $135 today in the space of a decade.

(DS)

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