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Morning News

Britain's Fuel Crisis Causes Problems Beyond Gas Stations

Aired September 13, 2000 - 11:11 a.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

DARYN KAGAN, CNN ANCHOR: Now we turn to the crisis in Europe as more protests against sky-high fuel prices: how bad is it? Let's look at this graphic to give you an idea of what it costs to buy gas: what will cost you $1.76, that outrages many Americans, costs $4.50 -- heard some reports of as high as $4.99 in Britain.

And because of that, many gas stations are dry, traffic is snarled, and people are panic-buying. The British government has been holding emergency talks on the crisis.

To London, now, and CNN's Nic Robertson with the latest there.

Nic, just how bad have things become in Britain?

NIC ROBERTSON, CNN CORRESPONDENT: They're bad right now, Daryn.

Two-thirds of the 13,000 gas stations in Britain are closed and without fuel. About 100 trucks did leave refineries today; that number way below the number of fuel trucks normally delivering fuel today. The refinery managers there under pressure from the British government to resume the fuel deliveries.

Many of those deliveries, for example, to the gas station behind me, came in overnight. Within 12 hours they were sold out again. This station here, again without gas. It was one of the first to get this resupply, if you will, and now it's without gas.

The knock-on effect: for example, some schools in Wales will be forced to close tonight, they say there are about 19,000 pupils in one particular area who they will not be able to provide fuel for their bus to get them home. The mail service is being affected, so there's a run on cash in some cash dispensers in some parts of the country.

So the knock-on effect here, really beginning to go out beyond the pumps -- Daryn.

KAGAN: Meanwhile, the prime minister, Tony Blair, says he's not going to give in to this panic and in to the protests, but how long can he hold out to that political pressure?

ROBERTSON: Well, really, it's very much up to him at this time, how long he can hold out.

This is an election year, essentially, that we're into. It's about nine months before the next general elections are expected. And the leader of the opposition here, today, William Hague, came out and criticized the prime minister, he said that this particular government had added tax on tax on tax to the people. He said that the government was out of touch with those people, and that the government would pay the penalty at the next general election.

Interestingly, however, he did not promise, should his government get in power, should his party get in power, that they would cut the fuel tax. So it is a very hot issue, this is a major problem for the Prime Minister Tony Blair. How he deals with it will very much affect his popularity in the next few months.

KAGAN: Nic Robertson in Britain, thanks for bringing us up to date.

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