Talks to end tanker drivers' strike

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Leaders of the Unite union and managers from two haulage companies which deliver petrol and diesel to Shell garages met for more than three hours at a secret location in a bid to break the deadlock.

A joint statement from Unite and the two firms, Hoyer and Suckling, said of Monday's talks: "The meeting was helpful and both sides have agreed to adjourn to reflect on (the) discussions."

The Government said that on Monday fewer garages across the UK had run out of fuel because of the strike. Research for the Department for Business, Enterprise and Regulatory Reform said 616 garages had run out of one or more types of fuel compared with 647 on Sunday. A department spokeswoman said more sites had restocked since the weekend so fewer had no fuel for sale. The number of garages running out of fuel was estimated to be 7% of the 8,900 sites across the UK.

Despite the news, the AA said its patrol staff had reported widespread shortages and queuing at the pumps in Wales and south west England.

A petrol station near Exeter, one of the worst hit areas of the country, yesterday raised fuel prices to more than £9 a gallon. The Foxhayes station at Exwick put all grades of petrol and diesel up to £1.99 a litre. Manager Ron James said: "It's all been panic buying, we cannot get any more supplies. We're not being mean. The price will go back to normal as soon as we get a delivery."

The union has warned there will be another four-day strike from this Friday unless the pay dispute is resolved.

The drivers walked out at 6am last Friday but, despite the strike, informal contact was maintained between the two sides, leading to the formal negotiations.

The two sides have clashed over the drivers' pay, with the companies insisting they had offered a 13% rise, which would take average earnings to around £41,500 by the end of the year. The union maintained that the drivers were on a basic rate of £31,800 and were claiming a rise to increase that to £36,000.

Unite has criticised Shell for being "greedy" by not increasing payments to the haulage companies involved despite making huge profits.