Blair refuses to budge; CRISIS AT THE PETROL PUMPS.

PRIME Minister Tony Blair was today set to rule out any concessions on fuel prices despite the rapid spread of pump protests across the UK.

He was expected to use his speech on the launch of a government e-commerce drive in Loughborough, to slap down calls for prices to be slashed.

Mr Blair was also meeting his deputy John Prescott, who is Secretary of State for the Environment, Transport and the Regions, and the mounting demonstrations were likely to occupy the talks.

Earlier, Trade and Industry Secretary Stephen Byers refused to pledge a cut in fuel prices.

He insisted that there was no danger of fuel supplies drying up, saying that shortages at the pumps were due to panic buying not to the effect of demonstrations.

He said: "What people need to answer is if they want to see a cut in fuel duty - 2p off a litre is pounds 1 billion off public spending - where are these cuts going to occur?

"The actual percentage of tax being put on petrol today is lower than it was when we took office in May 1997. It was 78 per cent then and is down to 76 per cent now.

"If you look at taxation in the round and take into account business and social costs, then the motorist in the UK is not being discriminated against."

Mr Byers insisted that there was no danger of fuel supplies drying up, saying that shortages at the pumps were due to panic buying, not to the effect of demonstrations.

Contingency plans were in place to maintain essential services in the case of supplies dwindling.

"There are always measures that the government has and always plans in place. There is a stand-by procedure which could be used if need be," he said.

But he added: "There are adequate supplies."

Mr Byers made it clear that the government expected the police to ensure that blockades did not stop fuel supplies from flowing.

"There is a very important point of principle here. In Britain, questions of taxation are decided in the Budget. They are not decided by blockades in the streets."