Last-minute talks to avert 48-hour oil refinery strike that could threaten UK's petrol supplies

Talks aimed at averting the strike by workers at the Grangemouth oil refinery in Scotland will be held today after the union called the strike in protest at plans by Ineos to end the company's final salary pension scheme for new workers and to make other changes.

Motorists were urged by the Government last night not to panic over potential fuel shortages caused by the threatened strike.

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The plea for calm from Business Secretary John Hutton came as he invoked emergency powers to deal with the consequences of the 48-hour walkout this weekend.

The plant is responsible for delivering 10 per cent of the country's fuel to petrol stations. Managers say a stoppage would hit petrol, diesel, heating and aviation fuel supplies.

If implemented, emergency measures being considered by the Government could see a form of forecourt rationing, such as allowing non-essential users only a maximum purchase of £10 or £20.

It could also include ring-fencing supplies to police, fire and ambulance services, medical workers, the military and food suppliers

Police would also have wide-ranging powers to clear forecourt queues and keep order.

Mr Hutton insisted the Government will do everything it could to minimise disruption to the public and business.

Up to 1,300 members of the union Unite threaten to strike at Grangemouth from next Sunday in protest at plans by Dutch owners Ineos to end the company's final salary pension scheme for new workers and to make other pension changes.

Ineos has already started shutting down the refinery on "health and safety" grounds. It warned the plant could be closed for up to a month.

Phil McNulty, of Unite, accused the company of "economic terrorism" and of trying to spark a wave of panic buying to raise the stakes.

He said: "Ineos has jumped the gun and is panicking the public unnecessarily. A strike is an absolute last resort."

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Fresh talks between the two sides are scheduled at the conciliation service Acas today.

But Mr Hutton warned: "If the strike does go ahead, we will do everything in our power to minimise disruption. We have contingency plans in place, and today I have activated the first stage of those plans.

"This allows fuel suppliers to work together effectively to maximise available fuel. Everyone can help in this by just buying fuel as normal - buying extra causes problems in the system which would otherwise not exist."

AA president Edmund King said: "The last thing we need is panic at the pumps. Problems can arise if every motorist with a half-full tank decides to fill up early.

"With 30million cars on the road, this means, if half of those fill up when they don't need to an extra 375million litres of fuel would be required. That would lead to shortages."

The AA told motorists there was enough fuel available even if the strike goes ahead as long as they only filled up when they needed petrol.

Tesco, Asda, Sainsbury's and Morrisons have contingency supplies of fuel in their distribution centres which would be used in the event of shortages.

There have been some fears of a repeat of the chaos caused by the fuel blockades of 2000 with protesters threatening to capitalise on any supply difficulties by mounting demonstrations of their own.

They are angered by the 2p per litre increase in fuel duty - due this month but postponed in the Budget until October.

Grangemouth is one of nine major oil refineries. It distributes more than 200,000 barrels of fuel every day and supplies petrol stations across all of Scotland, Cumbria, Northumberland and parts of Yorkshire.

Ineos chief executive Tom Crotty said: "The union is well aware that a 48-hour strike will cause fuel chaos in Scotland and the North of England for weeks on end.

"This is a huge oil refinery and they know you can't just turn it on and off like a tap."

In 2000, seven days of blockades at refineries led to huge queues at forecourts and cost businesses an estimated £1billion.

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Yesterday, the People's Fuel Lobby said the "unrest and illfeeling" towards fuel price rises and tax demands was growing as it had in 2000. But any attempts by hauliers and farmers to blockade a refinery and stop strategic oil supplies in a protest would be illegal.

It would also be met with far tougher action from the Government - including use of anti-terror laws and the military.

Caught off-guard by the 2000 protest when the pumps ran dry and the country was almost brought to standstill, ministers have beefed up emergency contingency plans which include: police impounding lorries, arresting drivers and stripping them of their operators' licences; invoking anti-terror laws; and in extreme cases rationing petrol and mobilising troops.

Police have powers to break-up blockades of oil refineries by removing anything blocking access roads.

Oil prices yesterday hit a new record high of more than $117 a barrel, spelling yet more misery for motorists at the pumps.