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Salmond in pledge on fuel stocks Strike could cost UK '£50m a day'
(10 minutes later)
First Minister Alex Salmond has said there was an "ample and substantial" stock of fuel to cope with the planned strike at Scotland's only oil refinery. Scottish ministers have raised concerns that a planned strike at Scotland's only oil refinery could cause serious problems for north sea oil and gas.
Workers at Grangemouth will walk out on Sunday, after talks between union officials and bosses broke down. Workers at Grangemouth will walk out on Sunday after talks between union officials and bosses broke down.
Mr Salmond told MSPs that fuel would last "well into May" and more could be imported if needed. The Holyrood government also warned any move by retailers to hike petrol pump prices was "clearly unacceptable".
The first minister urged members of the public not to panic buy, but asked them to cut non-essential trips. First Minister Alex Salmond earlier said there was an "ample and substantial" stock of fuel to cope.
Ineos and the Unite union held two days of talks at conciliation service Acas, but they have failed to resolve the dispute. He said fuel would last "well into May" and more could be imported if needed as a result of the two-day strike, beginning on Sunday.
Speaking at question time at the Scottish Parliament, Mr Salmond said: "Assuming consumer behaviour is responsible, then there should be limited difficulties, both in terms of inconvenience and disruption. The first minister also urged members of the public not to panic buy - but asked them to cut non-essential trips and use public transport.
The first minister said there was a need for the "public's cooperation to behave sensibly and responsibly" and cut out non-essential trips and to use public transport. It would clearly be unacceptable if any retailer were to take advantage of the potential of localised fuel shortages and increase prices ]John SwinneyScottish finance secretary
'Essential utilities' He added: "The essential message is that the stocks of the available range of fuels will stretch into May and there is the capacity to import more if required."
He added: "The essential message is that the stocks of the available range of fuels will stretch into May and there is the capacity to import more if required. Grangemouth receives about 725,000 barrels of crude oil and 80 million cubic metres of gas a day from the Forties oil field, in the North Sea, at the Kinneil processing plant.
"Scotland can cope with this difficulty". Malcolm Webb, of the trade body Oil and Gas UK, said the potential loss of production could cost the UK £50m a day.
Meanwhile, UK Business Secretary John Hutton told the Commons there was no need at present to take further steps under emergency powers to ensure supplies. In an emergency statement to the Scottish Parliament, Finance Secretary John Swinney said: "While this plant would be ready to operate soon after the end of the industrial action, there will still be the possibility of disruption to production.
"This could place a substantial penalty on upstream production and could affect almost a third of oil producers in Scotland."
THE GRANGEMOUTH SHUTDOWN The plant is directly connected to the Forties oil field system in the North Sea and has an annual capacity of about 10 million tonnes of crude oilCrude is also imported to the site from around the worldThe system has to be powered down gradually, but there is no "off switch" as suchEach plant's equipment has to be cooled and a gradual reduction in pressure maintainedThe same gradual reactivation has to occur when the system is restartedParts of the facility are regularly shut down for maintenance, although this weekend would mark the first total shutdown in the plant's historyDespite their differences, both the management and the unions said that safety at the plant was a priority and that it would not be compromised during the dispute Q&A on the Grangemouth disputeTHE GRANGEMOUTH SHUTDOWN The plant is directly connected to the Forties oil field system in the North Sea and has an annual capacity of about 10 million tonnes of crude oilCrude is also imported to the site from around the worldThe system has to be powered down gradually, but there is no "off switch" as suchEach plant's equipment has to be cooled and a gradual reduction in pressure maintainedThe same gradual reactivation has to occur when the system is restartedParts of the facility are regularly shut down for maintenance, although this weekend would mark the first total shutdown in the plant's historyDespite their differences, both the management and the unions said that safety at the plant was a priority and that it would not be compromised during the dispute Q&A on the Grangemouth dispute
Mr Swinney said ministers said ministers would continue to work with fuel retailers, but warned: "It would clearly be unacceptable if any retailer were to take advantage of the potential of localised fuel shortages and increase prices."
Meanwhile, UK Business Secretary John Hutton told the Commons there was no need at present to take further steps under emergency powers to ensure supplies.
He added that the industry was confident any localised shortages would be re-supplied quickly.He added that the industry was confident any localised shortages would be re-supplied quickly.
Despite his optimism, the chief executive of trade association, Oil and Gas UK, Malcolm Webb, said there was an urgent need for clarity to ensure the dispute did not affect production in the North Sea. Grangemouth operator Ineos and the Unite union held two days of talks at conciliation service Acas, but failed to resolve the dispute, surrounding changes to its pension scheme.
Grangemouth receives oil from the Forties oil field in the North Sea at a processing plant at Kinneil in Grangemouth. The dispute caused confusion at Edinburgh-based Lothian Buses, after the operator said it may have to halt services because BP was prioritising deliveries to petrol stations.
Mr Webb said: "We strongly urge the parties involved to respond to the secretary of state's call to ensure that essential utilities are maintained at Kinneil, a move which would avoid the unnecessary shut down of much of the nation's central North Sea oil and gas production." Scottish ministers later said there had been a "misunderstanding" and the bus company would receive diesel.
'Price promotion'
Mr Webb said if the Kinneil plant was shut down there would be a knock-on effect on gas production equivalent to about 30% of current UK demand.
He added: "This potential loss of production would have a wholly disproportionate effect on the national economy, losing the UK about £50m every day."
The two-day strike was voted for in protest at plans by Grangemouth operator Ineos to make changes to its pension scheme.
At lunchtime on Thursday, Edinburgh-based Lothian Buses announced that it did not expect to be able to run any services after Sunday evening because BP was prioritising deliveries to petrol stations instead.
But a short time later, the Scottish Government issued a statement saying there had been a "misunderstanding" and the bus company would receive diesel from BP.
Lothian Buses then gave reassurances that its fleet would be fuelled and services would run as normal.
In addition, BP was in the process of withdrawing a promotion on its forecourts in Scotland and the north of England, after fears that it might encourage drivers to unnecessarily fill up their cars.
Government ministers say fuel demand can be metGovernment ministers say fuel demand can be met
BP was also withdrawing a promotion on Scottish forecourts and north of England, after fears it might encourage drivers to unnecessarily fill up their cars.
Customers had been offered double points on the Nectar loyalty card scheme if they bought at least another 10 litres of fuel within a week of visiting a BP garage.Customers had been offered double points on the Nectar loyalty card scheme if they bought at least another 10 litres of fuel within a week of visiting a BP garage.
The Scottish Motor Trades Association described the promotion as "a bit silly", and said it sent out the wrong message. The Scottish Motor Trades Association branded the promotion "a bit silly" saying it sent out the wrong message.
The IAM Motoring Trust said anything that encouraged drivers to fill up more often than they normally would was "not what we want at the moment". Acas said that, although the two sides in the dispute had not come to an agreement, time had been spent addressing the issue of safety and the integrity of the Grangemouth site during the strike.
Conciliation service Acas said that although the two sides in the dispute had not come to an agreement, time had been spent addressing the issue of safety and the integrity of the Grangemouth site during the strike.