Irish oil distributors will announce price rises today

Most oil distributors here will increase prices within the next 24 hours following the lead of Irish Shell, which has announced rises in home heating oil and kerosene, and in diesel for industrial use.

Oil companies have stressed that supplies are plentiful and fuel is still arriving in the State, unaffected by British and continental protests. They have cautioned against panic buying, seeing it as unnecessary.

Final decisions have not yet been made about the price of retail diesel and petrol at the pumps, but diesel is likely to go up by 4p a litre and petrol by 2p.

However, the outcome of a meeting today between the Taoiseach, Mr Ahern, and the Irish Road Haulage Association (IRHA) could decide whether the Republic will face the same crisis affecting Britain and other EU countries, including blockades of oil terminals.

The Irish Exporters' Association has appealed for the Government and the hauliers to work out a solution, "which will ensure that we avoid any French-style disruption". Mr Brendan Farrell, the association's president, said Ireland had a high dependence on exports and 92 per cent of all freight was moved by road, so a solution was absolutely essential.

The IRHA was last night considering whether to blockade access routes to Dublin if the Government does not reduce its excise duty on industrial diesel by one-third. It had sought a 20 per cent drop to combat international price rises, but before a meeting of the executive the association's president, Mr Gerry McMahon, said a 20 per cent reduction was no longer enough.

"Diesel [for industrial use including haulage] is going up 3.89p a litre and in the last 10 days it went up 1.7p a litre. That would wipe out a 20 per cent drop." Mr McMahon stressed that hauliers did not want to cause disruption.

Irish Shell announced an increase of 3.8p a litre on industrial diesel, 3.84p a litre on home heating oil to 38.96p, and 3.28p a litre on kerosene to 39.51p. This latest increase means that filling up on home heating oil for the winter will now cost an extra £38 for an average 1,000 litres.

The company's corporate relations manager, Mr Declan Fallon, said the diesel price had risen from $286 to $333 since the beginning of the month.

Statoil's public relations manager, Ms Martina Byrne, said its regular monthly review takes place today.

Monika Unsworth adds from Belfast:

Any attempted blockade in Northern Ireland over fuel prices would be "highly counterproductive", Ministers warned yesterday.

The Finance Minister, Mr Mark Durkan, said he hoped the disruption would not spread to the North. "We are already facing difficulties with regard to the fuel sector. The differentials in terms of exchange rates and in fiscal levels between North and South have made life already very difficult for the retail fuel sector here," he said.

The Minister of Trade, Enterprise and Investment, Sir Reg Empey, said the issue of petrol prices would be overshadowed. "What is happening in Britain is going to become a law-and-order issue, a test of strength," he said.

The Northern Secretary, Mr Peter Mandelson, emphasised the British government's determination not to give in to blockades.