Sept 2000 fuel protests. Will it happen again?

[DJ-Daz]

Background

In the United Kingdom, tax on fuel for road use is made up of two elements, fuel duty and value added tax (VAT). Fuel duty is applied at a fixed amount per litre by fuel type, and VAT is then added as a percentage of the combined total of the cost of the fuel and the fuel duty. Historically, fuel duty was increased annually, broadly in line with inflation. In 1993 the fuel price escalator was introduced by the Conservatives, justified as being designed to encourage less motor vehicle use, and thus combat climate change. The idea was to annually increase fuel duty, initially at 3%, later rising to 5%, above the rate of inflation. The Blair administration then increased the rate at which the escalator exceeded inflation to 6%.


By 2000, tax accounted for 81.5% of the total cost of unleaded petrol, up from 72.8% in 1993.[1] Fuel prices in the UK had risen from being amongst the cheapest in Europe to being the most expensive in the same time frame. The protesters said that higher transport costs in the UK were making it difficult for haulage industry to remain competitive. The worldwide price of oil had increased from $10 to $30 a barrel, the highest level in 10 years. Drivers in the UK were now paying an average of 80 pence a litre for unleaded and 80.8p for diesel. The government had already abandoned the fuel tax escalator in early 2000.

Timeline and effects

In 1999, lorry drivers had undertaken protests in London against rising fuel prices and announced their intentions for a nationwide campaign. The Conservative Party organised a day of protest on 29 July 2000 to draw attention to how fuel prices had increased under Labour, visiting town centres with petitions and distributing leaflets. The Boycott the Pumps campaign, also referred to as Dump the Pumps, was organised for 1 August 2000, with motorists being urged not to visit petrol stations on that day. Support for the day was reported to be patchy, with forecourts in the North-West being hit the hardest, some reporting a 50% drop in business.

On 8 September 2000, Stanlow Shell oil refinery near Ellesmere Port in Cheshire was blockaded by Farmers for Action, led by David Handley. Over the next few days, pickets were reported at Milford Haven and an oil terminal at Avonmouth causing some petrol stations to run out of supplies. On 8 September 2000, fuel protesters blockaded several facilities for a limited period and disrupted fuel supplies to Yorkshire, North West England and the Scottish Borders and demanding that the government reduce fuel taxes. Some of the protesters called for a reduction of between 15 and 26 pence per litre in duties.

The protests spread so that on Sunday 10 September 2000 they included facilities at the Manchester Fuels Terminal, the largest inland oil terminal at Kingsbury and at Cardiff docks. Panic buying of petrol began to close some petrol stations as motorists queued for fuel which was beginning to be rationed and reports of garages increasing their prices substantially. Rolling roadblocks were also reported in North East England on the A1 and A55 roads. On 11 September 2000, the government obtained an Order in Council which was authorised by the Privy Council and the Queen to take emergency powers under the Energy Act 1976 to ensure delivery of fuel to essential services. By now 6 of the 9 refineries and 4 oil distribution depots were subject to protests.
“ The campaign is against the government, it's a government taxation issue - it [the government] is not addressing what the protesters want. ”

—Texaco,

By Tuesday 12 September 2000, 3,000 petrol stations were reported to be closed due to a lack of fuel. There were also reports that there would be no fuel left within 48 hours. Tony Blair, the Prime Minister put the oil companies under pressure to resume deliveries. BP said that they would resume deliveries if police escorts were given to the tankers. Tony Blair had been in contact with the oil companies during the day and announced that supplies would be back to normal within 24 hours, with the oil companies having been ordered under the government's powers to commence deliveries to the emergency services. At the same time BBC News reported that the government's COBRA committee had drawn up plans to deal with the crisis, including using the military to assist in moving supplies and restricting the sale of fuel. South West Trains were reported to be reducing some of their services to preserve fuel supplies. Deliberately slow moving convoys of lorries caused traffic jams on the M1 and M5 motorways.

On 13 September 2000 the government announced that 5% of normal fuel deliveries were made, however other reports indicated that only 3.8% amounting to 5,000,000 litres (1,100,000 imp gal; 1,300,000 US gal) compared with a normal daily sale of 131,000,000 litres (29,000,000 imp gal; 35,000,000 US gal). In Scotland only very limited supplies were being delivered for emergency use only. Three quarters of petrol stations were reported to be without fuel. Some NHS trusts cancelled non-essential operations due to staff difficulties in reaching work, ambulances were only able to answer emergency calls in most parts of the UK and the National Blood Service reported difficulties in moving supplies around the country. The government placed the NHS on red alert.[21] Supermarkets began rationing food due to difficulties in getting food deliveries through and there were reports of panic buying.[24] Sainsbury's warned that they would run out of food within days having seen a 50% increase in their sales over the previous two days; Tesco and Safeway stated that they were rationing some items.[25] The Royal Mail also reported they didn't have enough fuel supplies to maintain deliveries and that schools began to close. The government began deploying military tankers around the country and designated 2,000 petrol stations to receive supplies for essential services. Some deliveries commenced from the refineries and the police supplied escorts as required to ensure that tankers could move.

On 14 September 2000 the protests began to end. Several blockades of refineries were still in operation and the first deliveries were sent to designated distribution points under the emergency powers obtained by the government. Bus companies had warned that diesel stocks were running out and that services would need to be restricted to extend supplies. The protesters said that they were giving the government sixty days to act on the issue or they would protest further. A planned protest by truck drivers in London was contained by the Metropolitan Police and did not cause disruption. A later report following an analysis of the automated counting equipment on the road network the Department for Environment, Transport and the Regions showed that at the protest's peak, 14 September, car flows on UK motorways was 39% below normal levels and on major roads 25% below. However for road haulage the numbers showed a smaller decline of 13% on both motorways and major roads.

By 16 September 2000, supplies were beginning to be restored, at first only to the government designated petrol stations, the number of which had risen to 3,300. The London Chamber of Commerce reported that the protests cost businesses £250 million a day.[20] After the protests had ended the Institute of Directors estimated the cost to UK businesses at £1billion.

Reaction

During the protests the oil companies were accused of collusion with the protesters by members of the government and its advisors. It was reported that the police had kept the roads clear yet tankers were being kept in the depots and not delivering petrol. The Transport and General Workers Union said that there had been incidents of intimidation against drivers of the fuel tankers. The possibility of court injunctions against the protesters was explored by TotalElfFina who received legal advice that it would be difficult to obtain and enforce one as there was not a named individual on which to serve the injunction. The company also stated that even if roads were clear, delivering fuel might change the mood of the protesters which had been "amicable" and that "Getting fuel to the pumps would only solve the short-term problem and not deal with the original concerns of protesters." The TGWU subsequently called for a public inquiry into reports of collusion between the demonstrators and the oil companies, saying that they had evidence of protestors being allowed access to the oil companies' sites without security checks and that drivers who had been willing to deliver fuel being told not to.
“ Were we to yield to that pressure it would run counter to every democratic principle this country believes in, and what is more, if the government was to decide its policy on taxes in response to such behaviour, the credibility of economic policy vital to any country would be severely damaged and I will simply not allow that to happen. ”

—Tony Blair,

The government stated that they would not back down in the face of protests or introduce an emergency budget.[19] The government argued that the rise in prices was due to increases in the world oil market prices and not the government's fuel duty. Whilst agreeing that the government could not make policy in response to the blockades, William Hague, Leader of the Opposition criticised the government for having increased taxes, whilst the Liberal Democrats argued that the government should have responded to the protest much earlier. The Amalgamated Engineering and Electrical Union called for a reduction in fuel duties during the action.

A BBC opinion poll conducted by ICM of 514 people by telephone showed that the public support on 12 September 2000 for the protesters stood at 78% until the possibility of essential services being affected when it fell to 36%.[26] An opinion poll for the Daily Mail of 502 people showed that over three quarters thought the government had handled the crisis badly.[29] Two opinion polls shortly after the protests had ended showed the Conservative Party had overtaken or reached equal standing with the governing Labour Party. By November support for the renewal of protests and the revival of the Conservative's fortunes had both been reduced, with Labour retaking a poll lead.
Consequences

In his pre-Budget report of 8 November 2000, the Chancellor, Gordon Brown, announced numerous changes which could ease the tax burden for motorists, and which included the taxing of foreign lorries using British roads. These changes included a cut in duty on ultra-low sulphur petrol, a freeze on fuel duty for other grades of fuel until at least April 2002 (effectively ending the fuel duty escalator), placing more vehicles into the lower vehicle excise duty (VED) band, an average cut of more than 50% on VED for lorries, and a Brit Disc vignette scheme requiring all lorries, including those from overseas, to pay tax to use British roads. The fuel duty freeze has been estimated to have cost the Treasury £2billion pounds annually in a 2004 report by the Economic and Social Research Council.

A renewed protest that same month, involving a convoy from North East England to London, did not produce the same level of support or disruption as before. It ended with a protest in Hyde Park and the closure of the Westway by vehicles left parked on it. A similar protest from John O'Groats to Edinburgh resulted in around 80 vehicles congregating in the centre of the Scottish capital. There had been some panic buying of petrol due to this protest and there were temporary closures of some petrol stations.

Brynle Williams who was one of the organisers of the protests later became a member of the Welsh Assembly for the Conservative party.

[DJ-Daz]

And to think that was all caused by prices rising to 80 pence per litre.
We're now sat at £1.40 per litre and more in some areas.

Should it happen again?

[Symonator]

lol bp gotta make that $7.7b lawsuit money back