THE Government raised the prospect of petrol rationing last night after taking the first steps to use emergency powers to control fuel supplies.
After a day in which garages saw chaotic scenes of panic buying, the Government announced it was prepared, if necessary, to use special powers under the Energy Act of 1976 to control the distribution of fuel.
The move was agreed by the Queen in a meeting with Energy Minister Helen Liddell earlier in the day. Trade and Industry Secretary Stephen Byers said the step was a precautionary measure taken to safeguard essential services.
He said: "We will take whatever steps are needed to ensure that priority users such as the health services, schools and public transport are supplied with fuel."
The situation will be monitored today before a decision is taken on invoking the powers, which allow Ministers to direct where all fuel should go, a spokeswoman for Mr Byers' department said.
The move came after panic- buying by drivers brought chaos to roads around many garages, despite an appeal by the Prime Minister.
Tony Blair called on drivers not to hoard petrol, saying it would simply aggravate the problems, but the Premier fell victim himself to the protests over rising fuel prices by hauliers and farmers.
He was forced to miss a dinner celebrating Deputy Prime Minister John Prescott's 30 years as an MP after blockades went up around the Hull restaurant where he was due.
Elsewhere, as the crisis deepened, some hospital patients faced cancelled operations as ambulances were put on an emergency-only footing in a bid to conserve fuel.
Hauliers also warned that diesel shortages could hit deliveries to supermarkets and shops.
The major petrol providers all announced massive station closures, including many across the North-East and North Yorkshire, with more threatened today.
TotalFinaElf, which has 1,400 petrol stations nationwide, said at least 50 per cent would run dry by midnight last night.
Shell's terminals at Jarrow, Tyne and Wear, and Stanlow at Ellesmere Port, Cheshire, remained shut throughout yesterday.
Mr Blair has vowed not to cave in to demonstrators who are preventing tankers leaving many of Britain's refineries. "We cannot, and we will not, alter Government policy on petrol through blockades and pickets," he said.
He said the high price of diesel and petrol was down to producers' cartel Opec.
But Tory leader and Richmond MP William Hague described the situation as a "crisis made in Downing Street".
Petrol prices had risen by 26p in two years, he said, with 16p of that going straight to Chancellor Gordon Brown.
Last night, a spokesman for the Road Haulage Association in the North-East said: "Until something is done about fuel duty, these protests are going to continue."
Yesterday, a convoy of 40 coaches brought chaos to Newcastle, crawling up the A1 from Washington and dawdling over the Tyne Bridge. A protest is planned for York this morning.
Police on Teesside stepped in to prevent protestors blockading Philips Petroleum at Seal Sands.
Bus operators Go North East, Stagecoach and Arriva reported that the crisis has yet to hit them and rail operators Northern Spirit said it had no immediate worries.
But Durham County Council is holding an emergency meeting this morning amid fears that school transport and home-helps could be hit.
At Durham, Age Concern voiced fears that its care service could be affected.
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