FUEL protesters set out to bring Manchester to a standstill today - as calls for curbs on soaring petrol prices reached a new high.

A convoy of bikers, motorists and hauliers were due to pour into the city centre in a convoy expected to leave Birch services on the M62 at 8am.

Police last night held talks with the protest leaders in a last ditch bid to steer them away from the inner ring road and minimise the rush-hour chaos.

The Highways Agency warned motorists to find alternative routes and warned rolling road-blocks could be put in force.

The news came as Labour backbenchers joined a chorus of voices warning Gordon Brown not to go ahead with a planned 2p increase in fuel duty this autumn.

Graham Stringer, MP for Manchester Blackley, said: "The government has not reacted quickly enough to the pressures on the household budgets. The 2p increase is an example of that and we need to take action." The protesters are call- ing on the government to remove the VAT that is levied on British fuel - the most costly in Europe.

Figures

AA figures suggest only 48p on every £1.15 litre of petrol is made up of production, delivery and retail margin. A further 50p is fuel duty and a further 17p is VAT.

That makes a total of 67p in tax - compared to the equivalent of 35p in Ireland and 31p in Spain.

One of the protest organisers, a biker known only as `Maverick', said: "We have had a huge amount of support.

"We don't want to create a jam but it is time for action and our message to people is: `enjoy it'."

There was some slight relief for motorists as pump prices appeared to be levelling off after a 3p cut in the retail price by producers. The average cost of a litre of petrol stood at 116.42p yesterday - revealing a smaller price rise than in recent weeks.

That appears to reflect a strengthening of the US dollar which analysts hope will persuade speculators to stop trading in petrol and return to their usual hunting ground of currencies.

The speculators have been blamed for increasing costs at the pump by disrupting the link between the amount petrol costs to produce and how much people pay at the pump.

The government has announced moves to increase North Sea oil production but has admitted that will not protect British motorists from global price fluctuations.

'Far too high'

An AA spokesman said it was too early to say if pump prices would level off and said they remained `far too high'.

"It would be crazy for the government to go ahead with the planned 2p increase in fuel duty when prices are as high as they are," he said.

That call was echoed last night by the Greater Manchester Chamber, which said it "understood the frustration" which sparked today's planned protest.

Richard Critchley, the chamber's policy manager for transport, environment and planning, said: "The rising cost of fuel is having a big impact on commuters and businesses alike.

"We therefore understand the frustration that has sparked this protest.

"However we do not believe that such a demonstration is the best way to influence government policy. Instead it will cause disruption to ordinary commuters who are just trying to get to work.

"We have emailed our members to warn them to allow extra time for their journeys.

"As a chamber we are lobbying the government to scrap the 2p rise in fuel duty scheduled for October. The Treasury has already received £505m in tax since April 1st due to the rising price of oil, which is the same amount as would be raised by the proposed 2p rise."

Contain

A Highways Agency spokesman said the police and councils hoped to contain the protestors to a route taking in the M60 and the M602, the A5063 Trafford Road and on to Salford Quays. It was unclear last night whether the convoy would accept that route rather than pressing on to the inner ring road and into the city centre.

The spokesman said last night: "We are advising people to check the traffic reports before setting off."

Mr Brown came under further pressure in parliament yesterday for another measure due to hit motorists - changes in road tax which could see owners of the most polluting cars pay as much as £200 more.

Tory leader David Cameron warned the prime minister was likely to lose his job if he didn't scrap the `deeply unpopular and un-environmental' changes. Mr Cameron, pointing to Labour unrest over the plans, bluntly told Mr Brown at Commons question time: "If you don't get rid of it, they [Labour backbenchers] will probably get rid of you."

Mr Brown defended the changes as a means of cutting carbon emissions and tackling climate change.

In rowdy exchanges, he accused the opposition leader of `running away' from taking action on the environment and `sounding more and more like a used car salesman'.

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