Empresas y finanzas

Fuel prices threaten livelihoods across Europe

By Estelle Shirbon

ST MALO, France (Reuters) - It was always a hard lifeworking on trawlers off the coast of Brittany but MarcGrandmougin put up with it for 20 years -- until surging fuelcosts cut the French fisherman's income by a third in one year.

On a normal week, Grandmougin is at sea from Sunday nightto Saturday morning, snatching a few hours of sleep in betweengruelling 18-hour shifts. He has just one night at home withhis wife and three children.

But the past two weeks have been anything but normal.Grandmougin is among thousands of French fishermen who havegone on strike, blocking ports and oil depots to demand cheaperfuel.

"At this rate the only solution for us will be to startrowing," he said with a bitter chuckle. He was killing timedoing maintenance work on his boss's trawler, the Jade III,which was blocking access to the port of St Malo.

A year ago, fishermen were paying between 30 and 40 eurocents (24 and 31 pence) per litre of diesel, which they can buytax free under French rules. The price is now close to 80cents, driven up by crude oil prices which have doubled overthe past year to hit a record high of $135 per barrel on May22.

Crude was trading near $126 on Friday.

As a result, the owner of the Jade III is spending twice asmuch on fuel and has that much less money left at the end ofeach month to share out among crew members like Grandmougin.

"I'm earning a third less than a year ago, but the workhasn't got any easier. It's the life I chose, but frankly if Ihave to work 18 hours a day to earn 1,000 euros a month thenit's not worth it anymore," he said.

Fishermen in Spain have also protested against spirallingfuel prices. In France, truckers and farmers have launchedtheir own protests, and European countries from Britain toHolland and Bulgaria have also been hit by truckerdemonstrations.

FOOD INFLATION ADDS TO WOES

Darren Brooker, who has two trucks based in southeastEngland, has seen his weekly fuel bill rise by 350 pounds ineight months.

Brooker employs three people, including his wife Lisa whomanages company accounts, but he says he will soon have to layoff staff unless the government steps in to help.

"We are not a bunch of whingeing truck drivers. It has gotto a point where you have to make a stand," he said during arecent protest in central London, where truckers snarledtraffic to press their case for lower fuel and road taxes.

Compounded by rocketing food prices, the fuel surge hascaused inflation to accelerate to multi-year highs in severalEuropean countries in May and the euro zone average for themonth hit an historic peak of 3.6 percent.

With consumers struggling to pay their bills,fuel-dependent businesses are loath to try to pass on the costto customers.

"You can't just raise prices in the middle of the season,so this price increase is coming straight out of the company'searnings," said Juergen Loch, the managing director of Berlin'sbiggest tourist boat operator.

Loch said the annual fuel bill for the firm's 40-oddsightseeing boats will rise by at least 300,000 euros comparedwith the previous year if fuel stays at current prices.

"We can't expect clients to swallow one price rise afterthe next. People's incomes aren't rising at the same rate," hesaid.

(Additional reporting by Andrew Hough in London and DaveGraham in Berlin; Editing by David Fogarty)

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