Sky News business editor Michael Wilson

It’s a time for steady nerves as the fuel strike threatens. This is nothing to do with the oil price – simply a straightforward pay dispute between tanker drivers and their employers. Those employers happen to be sole suppliers to around 1000 Shell forecourts, which are concentrated in the north-west, south-east, midlands and Scotland.

Shell own only one in ten forecourts, so on its own, the dispute could be manageable. But if the union action were to spread to other distribution centres, used by other companies, then the pumps would run dry over a much wider area.

So far, the business secretary John Hutton is keen to stress that while a meeting has take place between government and the industry, they have not invoked emergency powers.

The cooperation of the main industry players is, at this stage, key to smoothing the effects, and it’s a system which worked during the recent Grangemouth dispute. Under normal circumstances, fuel companies are not allowed, under competition law to share information about pricing and stock levels. But the Office of Fair Trading allowed a Memorandum of Understanding to apply during circumstances like this, and it has been in force since last Friday.

And there’s always the possibility that the sides come to the table hammer out and agreement.

But the whole fuel thing is a dangerous brew – as I said, this particular dispute is not about the oil price, but that side of the fuel crisis is about to emerge again, and will ignite the sort of anger which will begin to fuse the separate issues together and make a settlement that much more difficult.

The hauliers are in town again, angry that their letter to Downing Street, delivered on May 29th has not even been acknowledged, let alone answered. They were asking for a 25% rebate on the fuel duty they pay, to at least be able to compete with the Continental lorry drivers who have cheaper fuel and a growing slice of the British hauliers business.

They’re meeting in London to decide their next course of action. A mix of strikes and fuel blockades would be very unpleasant.

Comments

[Gordy Glos 12 Jun 2008 18:14:59]

Sir,

Why are a minority of the population allowed to hold the remaining population to ransom so that they can line their own pockets. All buisnesses should refuse to serve any SHELL petrol Tanker driver who is strking. They are greedy and are short sighting in thinking that they have the public support. In my view they dont derserve any support and whats more thier exployers should sack them all all recruit those drivers who cannot get such a lucrative job but would gladly do the job. Here's wishing them every bit if bad luck possible in the next 4 days. As someone who needs their vehicle to communt to work I have no sympathy with thier cause whatsoever. get a life and b=get back to work and stop being so greedy.

[Robert, Scotland 10 Jun 2008 21:49:15]

Is this Government for real? Issuing pleas for people not to panic buy petrol. Do they not realise people cannot afford petrol at today's prices. Me! I get in a panic when I have to buy my minimum needs, to fill the tank I would need one of those bank loans no-one is giving out now.

[Purps, Chelmsford 10 Jun 2008 14:40:56]

Michael,

May I ask why nobody in the finance media has asked the important question of what additional benefits have the UK received on the 600,000 bbls per day Oil for Arms barter deal?

The Al Yamamah deal.

Surely, this transaction should mean a large part of our daily imports is at a price far lower than current prices.

If this is so, then why has the UK public not had a share of this extra benefit wit lower fuel prices.

[Michael Cornwall 10 Jun 2008 12:07:56]

I think if Cameron made some statement on tax on fuel he would either be called a saviour or also ran. I cant see why there is a freeze at least on fuel tax or the hauliers must talked with. Fuel is a big issue in Cornwall because of our location. I hope to give you more insight into the farmers tomorrow, as fuel is a big worry for them.

[Khalid 10 Jun 2008 11:23:27]

Sir
Insofar as any matter pertaining pay, then who would argue we all want to earn to our fullest potential in order to provide for our GDP, a matter which has been of much concern surrounding party expenditure and other such green issues arising.
Cows as we know when [On Standby] produce more Co2 emissions when they go into the [Shed Seven] however remain free from any such unified subsidies otherwise enforced upon the motorist.
Fuel, whilst indeed taxed to high levels brings about much to the financial kitty, if it were used as prudently acclaimed.
Reductions or rebates must be available to all otherwise perceptions will not be as rewarding in the short term, however perceived.
Whilst the right to strike is a matter for local choice, lets hope local choice is duly regarded and barrels come down to $75 to ease economical prosperity for generations ahead.
Luckily skynews will keep us duly informed, wont you please?