Chancellor's warning on petrol prices

Protests in September triggered fuel shortages

UK Chancellor Gordon Brown has warned oil companies he is monitoring forecourt prices following big falls in the cost of crude oil.

His warning was closely followed by a pledge by BP Amoco to cut the average price of unleaded petrol at its UK service stations by 1p a litre from this weekend.

Earlier in the week Shell, Sainsbury's, Tesco and Morrisons cut the price of unleaded fuel by 1p. Sainsbury's is also cutting diesel by 1p from midnight on Friday.

David Handley says protests are officially back on

Mr Brown entered the debate about whether firms were passing on price cuts to consumers as protesters staged several small demonstrations at fuel depots but failed to interrupt supplies.

In an interview with The Times, the chancellor warned oil companies he continued to review their tax position.

He noted the price of oil had fallen from $34 a barrel (£23) to $24.

And he said: "As far as the price consumers pay, I just repeat: we continue to monitor the situation."

The Treasury said later Mr Brown would not be rushed into short-term decisions on a windfall tax on oil firms' profits.

'Protest on'

A spokesman said: "The chancellor has been concerned about the reports that oil companies are not passing on reductions in world oil prices to consumers and is monitoring the situation carefully.

"He has said repeatedly that he is determined that the consumer should get the best deal. It has been put to him that the North Sea oil companies earning higher profits should be subject to special taxes.

"As he said to the Treasury Select Committee, we keep the situation under constant review but he is determined not to make short-term decisions based on short-term factors."

It is intended to carry out short, sharp spontaneous guerrilla-style protests at fuel depots across the country

Fuel protester Paul Ashley

David Handley, of 'Farmers for Action', insisted the fuel protests were ' back on'.

Farmers, hauliers and coach operators staged small protests in Cumbria, Tyneside, Greater Manchester and Hampshire.

Mr Handley said protesters had targeted the BP depot at Dalston in Cumbria, and other refineries in Jarrow, Ulverston, Workington, Trafford Park and Carlisle.

Last September's fuel protest triggered shortages across the country.

Protestors say this is not the aim of the new protest.

Farmer Andrew Spence, who led the fuel convoy protest from Tyneside to London, said they wanted to remind the government and the fuel companies that campaigners were still watching them.

'Direct action'

"This is a short-term protest and I expect we will be here for the rest of the day," he said.

"We are not here to cause disruption and I would urge people not to panic buy, because there is absolutely no need."

North Wales farmer Brynle Williams, who spearheaded the original protest, said he did not think the time was right for fresh action.

"We should wait until March or April, nearer the general election," he said.

Mr Williams added that he was still waiting for a promised meeting with ministers to discuss the issue of fuel taxation.

Farmer Andrew Spence turned up at Jarrow to protest

"The government was breaking its neck to speak to us in September, now it has gone very quiet and it is dragging its feet," he said.

"I will not rule out any direct action if the government doesn't respond to the tax element soon."

Shell UK head of retail Ian Sutcliffe said the company was concerned about the new protests.

But he added that the firm had worked with the government, police and other agencies involved to make sure there was no repeat of last year's scenes.

Protesters have said the cuts to petrol prices are too small and accused fuel retailers of "ripping off" consumers.