Fuel lobby turns fire on Safeway for 5p petrol rise

Fuel protesters yesterday called for a boycott of Safeway after the supermarket group raised the price of its unleaded petrol by 5p to 84.9p a litre.

Fuel protesters yesterday called for a boycott of Safeway after the supermarket group raised the price of its unleaded petrol by 5p to 84.9p a litre.

It said it had been losing money at the old price but the newly formed People's Fuel Lobby urged motorists to "shop with their feet". Other supermarkets and oil companies said they had no immediate plans to follow Safeway's example.

David Handley, spokesman for the People's Fuel Lobby, said: "All it is going to do is provoke aggravation. I should think they are going to lose an awful lot of shoppers. People will vote with their feet. It is totally insensitive and a very silly thing to do. I would suggest it is very, very bad timing."

Tom Houghton, spokesman for Farmers for Action and one of the leaders of the recent Stanlow Shell refinery protest in Cheshire, said: "I cannot understand why Safeway have done this in the current climate and I think people should simply refuse to buy petrol there."

Mr Houghton, a farm manager from Sandbach, Cheshire, added: "Esso were forced into a U-turn after public outcry at their price hike last week and I think Safeway will soon understand what people power is."

A Safeway spokeswoman said: "At 79.9p we were losing money ... our average cost of petrol has gone up to 82p litre." Safeway said its customers would still be able to buy "cheap" petrol. Shoppers who spend £40 or more at the supermarket will be allowed to claim a 10p per litre discount, bringing the price down to 74.9p.

Meanwhile, farmers plan to bring the centre of Brighton to a halt on Monday by driving 250 tractors through the town to protest outside the Labour Party conference. Activists are expected from Sussex, Kent and Surrey, according to the National Farmers' Union, which is backing the protest. Others intend taking tractors by lorry from as far as Gloucestershire.

At Westminster last night representatives of the Freight Transport Association met ministers to try to persuade them to cut fuel duty by 15p a litre for commercial users. Edward Roderick, a member of the association and managing director of the transport company Christian Salvesen, said it was time for the Government to admit it had made a mistake and that there was a need for a new approach. "As with the poll tax, governments do sometimes get it wrong and they should change their minds when they have."

Representatives from the Road Haulage Association (RHA), who have been in talks with the ministers all this week, yesterday held a meeting in Peterborough with 160 of last week's protesters. Eight farmers and hauliers were elected to join John Bridge, national chairman of the RHA and Roger King, its chief executive, in London for another meeting with ministers today.

At a business meeting in London, Stephen Byers, Secretary of State for Trade and Industry, accepted that the Government should listen to concerns over fuel. People wanted more money for schools and hospitals but they also demanded cuts in petrol tax. "In government we have to recognise that many people feel a real sense of grievance about this issue," he said.