A STRIKE threat at an oil refinery owned by one of Hampshire's biggest companies is pushing petrol prices as high as £1.30 a litre in parts of the UK.

The pensions dispute at Ineos' Grangemouth oil refinery, pictured, is contributing to a ten-day run of all-time high prices at petrol pump forecourts, particularly in Scotland.

The prospect of the first closure at a UK oil refinery in 73 years has lead to growing pressure on commercial fuel consumers, with Scottish Rail and ferry operators that rely on the Ineos plant for supply watching developments closely. The National Farmers' Union in Scotland also said its members were being hit by the dispute.

Up to 1,200 workers are due to walk out on Sunday and Monday in protest at plans to close the final salary pension scheme to new workers and make other changes to pensions.

Lyndhurst-based Ineos has started to close down the refinery, which processes 210,000 barrels of oil a day, and has warned of fuel shortages in Scotland and the North of England if the strike is not averted.

A motoring expert urged garages not to increase prices to cash in on concerns about fuel supplies if the strike at Grangemouth goes ahead. Douglas Robertson, chief executive of the Scottish Motor Trade Association, said that if a garage suddenly put its prices up by four or five pence it would suggest profiteering.

Industry experts said there had been signs of panic-buying in the country's major cities, although rural areas had not yet been affected.

Talks aimed at averting a planned 48-hour strike at the giant Grangemouth oil refinery are ongoing at the conciliation service Acas.

New Forest-based engineer turned successful entrepreneur Jim Ratcliffe founded the company just nine years ago. Today it is the world's third bigggest petro-chemicals company with sales of £18 billion. As principal shareholder Mr Ratcliffe has seen his personal fortune balloon to an estimated £3.3 billion.