Instability prompts focus on weakening of oil habit

Government ministers will be ordered to adopt urgent measures to wean Britain off oil, amid rising concern that the Libyan crisis has left the economy exposed to a dramatic rise in fuel prices.

With fears growing that the cost of petrol could hit £2 ($4.40) a litre if instability in the Middle East persists and deepens, every government department will be told this week to comply with a new national "carbon plan" aimed specifically at "getting off the oil hook".

The Energy Secretary, Chris Huhne, said Britain had no option but to speed up efforts to move away from oil.

"Getting off the oil hook is made all the more urgent by the crisis in the Middle East. We cannot afford to go on relying on such a volatile source of energy when we can have clean, green and secure energy from low-carbon sources."

The Transport Secretary, Philip Hammond, will be told he must produce a nationwide strategy to promote installation of infrastructure for electric cars by June.

New deadlines are expected to be set for building low-carbon homes, and a firm starting date of September 2012 will be established for a new "green investment bank" to become fully operational.

The Carbon Plan will be launched this week by Prime Minister David Cameron, his deputy, Nick Clegg, and Huhne.

Non-governmental organisations, including Greenpeace, will be asked to play a monitoring role to ensure progress across each department.

Sources have said that Clegg - unhappy that the coalition could not boast more green achievements - had recently chaired meetings with ministers in "growing frustration that some departments were not taking their green responsibilities seriously enough".

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