Fuel protest spreads across Europe

BRUSSELS, Belgium -- Belgian lorry drivers angered by rising fuel prices are blocking major avenues throughout the capital for a second day.

Monday's demonstrations came as hauliers and farmers in Britain caused petrol pumps there to run dry.

A wave of protests has moved across Europe after hauliers and farming groups in France won a 15 percent cut in fuel tax following blockades of oil refineries and storage depots which came to an end over the weekend.

Belgian demonstrators are vowing not to move until their government also cuts fuel taxes and action is expected to spread to other Belgian cities, including Liege and the northern port town of Antwerp, with oil refineries being targeted.

VIDEO A trucker explains his actions Play video (QuickTime, Real or Windows Media) CNN's Chris Burns reports on OPEC's plans Play video (QuickTime, Real or Windows Media) Oil price fluctuations have biggest impact on Europe Play video (QuickTime, Real or Windows Media)     ALSO Fuel questions and answers Fuel protesters force Blair to abandon meal Oil prices soar     MESSAGE BOARD Rising oil prices   OPEC IN BRIEF Organization of Petroleum Exporting Countries Founded 1960 11 Member Countries who coordinate their oil production policies in order to help stabilise the oil market and to help oil producers achieve a reasonable rate of return. Supplies over 40% of world oil Controls around 78% of total proven world crude oil reserves Secretariat based in Vienna Source: OPEC

In Britain, hundreds of petrol pumps are reported to be empty in the worst-hit areas of northwest England as a fourth day of blockades by hauliers sparked panic buying. Irish, Italian and German lorry drivers have joined the call for fuel tax cuts.

The blockade in central Brussels has forced thousands of commuters to take detours or leave their cars at home at the start of the working week.

"We're going to stay until we're satisfied," said haulier Christophe Giaux, with his vehicle parked in the middle of an avenue.

"Truckers in peril," read a sign posted in the windows of several parked lorries. "Without trucks, the economy stops," read another.

Belgian hauliers say a 50 percent rise in the cost of diesel fuel since the beginning of 1999 is threatening profitability.

They were due to meet with transport ministry officials later on Monday after failing to reach an agreement on Sunday.

The chairman of the Belgian Federation of Bus Operators (FBAA), Paul Laeremans, estimates that while fuel used to make up 10 to 12 percent of costs, it is now as high as 20 percent.

"They (the government) are not to blame for the price of oil, but they could lower the tax," said lorry driver Jean Bury.

In Britain, Shell's refinery at Stanlow near Liverpool has been blockaded since Thursday while the Manchester Fuels Terminal has been brought to a halt by hauliers protesting since Saturday.

Shell says more than 100 petrol stations in the region are now dry or close to it. BP Amoco faces similar difficulties with 50 percent of its 140 sites in the northwest either running very low on fuel or running out.

Convoys of lorries caused early morning commuter chaos on Monday by driving slowly on major roads along the south coast and into Edinburgh.

But Britain's chancellor Gordon Brown has ruled out any concessions on the taxes and duties which make up about 75 percent of the price of a litre of premium unleaded petrol in the United Kingdom.

The Irish Road Haulage Association, which represents about 1,200 of its country's 4,000 lorry drivers, has said it will mount protests on Friday and next Monday unless the government agrees to a 20 percent cut in duty on diesel.

In Italy, there were minor protests by fishermen on Friday and taxi and lorry drivers are scheduled to meet with Transportation Minister Pierluigi Bersani on Wednesday.

Blockades in France are coming down, but it is expected to take several days for fuel supplies to be back to normal.

Ministers from the Organisation of Petroleum Exporting Countries (OPEC) agreed on Sunday to increase supplies by 800,000 barrels per day amid international pressure for production to be boosted, but the move is not widely expected to have a great impact on crude oil prices.

Reuters contributed to this report.

OPEC agrees to boost oil output
September 10, 2000
EU demands answers over French fuel protests
September 7, 2000
Fuel protests widen across Britain
September 10, 2000
Pumps run dry amid fuel protest
September 4, 2000

OPEC
Oil Price Information Service
Fuel Duty Escalator Campaign

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