Europe governments struggle with fuel protests

Knut Enger: organiser of Norwegian truck protest

In this story: Fuel price protests continue to spread Political fallout Germany delays decision on fuel taxes RELATED STORIES, SITES

OSLO, Norway -- Hauliers and farmers in Europe have stepped up their protests against high fuel prices, blockading ports and petrol depots as governments seek to limit the political fallout.

Demonstrations centred on Scandinavia but blockades also sprang up at the Spanish port of Barcelona and in Slovenia, while hauliers in Israel threatened to stage their own action from Tuesday.

But in Norway, hundreds of truckers who had blocked 11 terminals in major ports in the south and west of the country called off their 24-hour blockade after state oil firm Statoil asked police to halt it, citing economic losses and the risk of claims from large customers if it continued.

VIDEO CNN's Chris Burns shows German truckers and farmers protesting Play video (QuickTime, Real or Windows Media) CNN's Al Goodman reports on the latest fuel blockade in Spain Play video (QuickTime, Real or Windows Media)

Despite being the world's second largest exporter of oil after Saudi Arabia, Norway has some of the highest petrol and diesel prices in the world.

But as Norwegian hauliers backed off late on Monday, demonstrators in other nations took up where they left off.

Irish fishermen have vowed to tie up their boats in ports around the country for 24 hours from midday Tuesday.

"We're in trouble," said a spokesman. "If this situation continues we'll be tying up our boats permanently."

Swedish hauliers and farmers partially blockaded southern ports and ferries on Monday in protest at a planned increase in tax on diesel fuel.

Demonstrations in Spain which began last Friday also resumed with a vengeance as fishermen sealed off the port of Barcelona.

"There is no way in or out," said a source from the Port Authority in Barcelona. "Negotiations are going on with a representative of the fishermen."

Two large cruising vessels were stopped just outside the port and around 200 fishing boats were unable to set out for their daily catch, officials said.

In the central region of Castille and Leon, the main grain-producing region, farmers blocked at least three fuel distribution points.

Norwegian hauliers had announced their blockade last week after Labour Finance Minister Karl Eirik Schjoett-Pedersen refused to promise fuel tax cuts in a draft 2001 budget.

In Britain, where fuel supplies are gradually returning to normal after last week's blockades, Labour Prime Minister Tony Blair is assessing the political damage.

Conservative opposition leader William Hague called the protest "a genuine taxpayers' revolt" and said tax was now "the hottest domestic political issue" facing Britain.

A weekend poll put the Conservatives ahead of Labour for the first time in eight years after the protests prompted a shortage of fuel and supplies not seen in Britain since the 1970s.

In Germany, the government put off a decision on offering tax relief in hardship cases caused by soaring oil prices, averting possible friction in the centre-left alliance.

Chancellor Gerhard Schroeder's Social Democrats had suggested helping low-income groups like pensioners pay heating oil bills and raising tax breaks for people who drive to work.

But his environmentalist Greens partners -- architects of an unpopular strategy to ratchet up energy taxes -- balked at the proposals and Schroeder moved to defuse the situation.

"There won't be any final decisions today," Schroeder told reporters in Berlin before a meeting of SPD leaders.

Similar coalition problems were besetting France.

Prime Minister Lionel Jospin's Communist partners have called a protest march for Thursday to demand swift cuts in petrol prices but his Green allies are angry over what they denounce as 'handouts to polluters'.

German Chancellor Gerhard Schroeder

In The Netherlands, the Dutch Government agreed on Saturday to give taxi, bus and trucking companies, as well as other fuel-using companies, some $300 million to compensate for high fuel prices, after initially ruling out any concessions.

Companies will also be granted an extra three months to pay road taxes.

Taxi and truck drivers in Israel slowed traffic in Tel Aviv and Jerusalem on Monday, while promising to cause further disruption.

The Hungarian government has agreed to postpone a six percent increase in excise taxes as long as the world crude oil price remains above $25 a barrel.

In southern Finland, some 20 trucks blocked traffic on Monday a highway a few kilometres from the Porvoo oil refinery, causing tailbacks up to 4 km (2.5 miles) long.

Diesel fuel in Finland costs about $3.03 per gallon, of which 52 percent is tax.

European fuel protests escalate
September 16, 2000
Fresh Europe fuel protests flare as others end
September 14, 2000
Blair moves to end growing UK fuel crisis
September 12, 2000
OPEC agrees to boost oil output
September 10, 2000

Oil Price Information Service
European Union
Scandinavian Oil-Gas Magazine
Norwegian Petroleum Directorate
Barcelona Port Authority

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