Petrol price rise threat as forecourts pull rogue fuel

Supermarkets were last night clearing their forecourts of the contaminated petrol blamed for causing thousands of cars to break down after the source of the problem was traced to a depot in Essex.

Harvest Energy, based in West Thurrock, said tests had found "unusually high levels of silicon" in four of its petrol storage tanks. The contamination had not been detected before sale to retailers, including supermarkets because routine tests did not look for silicon, the company said.

Industry estimates suggested the contamination has cost small businesses millions of pounds in lost earnings. And Ray Holloway, of the Petrol Retailers Association, said the crisis could raise petrol prices by 2p a litre.

"The stock on the forecourts is being withdrawn and they are replacing it with clean petrol," he said. "The increasing demand is pushing the prices up."

The Trading Standards Institute confirmed the presence of silicon in spot checks on fuel from forecourts. Experts believe the contaminant is damaging fuel sensors and causing cars to switch to emergency settings.

Edmund King, executive director of the RAC Foundation, said supermarkets should pay out immediately for lost fuel and repairs.