THE aftermath of the fuel crisis has highlighted the plight of small garages, which are struggling to compete while being accused of profiteering.

Owners of independent garages in South Lakeland spoke out this week after the rising cost of fuel had forced them to increase their forecourt prices.

They say they make very little money on fuel, and have to compete against supermarket prices, and oil company-owned garages which have the economy of scale and the support to sell cheaper petrol.

However, in a move which highlights the complicated pricing system which governs petrol stations, the oil company Texaco this week announced it would offer "price support" to independent garages which sell its fuel, until the petrol crisis was over, allowing them to reduce forecourt prices.

Uncertainty now surrounds fuel pricing and sales nationally, as Chancellor Gordon Brown refused to agree to protesters' demands that he reduce fuel tax, while Shadow Chancellor Michael Portillo pledged that a future Conservative government would cut tax on petrol.

The country was also plunged back into confusion when a rumour that the blockades were to reappear caused panic buying and queues, including some at Barrow and in west Cumbria.

MP for Westmorland and Lonsdale Tim Collins is to collect petition signatures against what he claims is high petrol tax from 10am today (Friday) at the Birdcage in Kendal's Finkle Street.

Neville Leviston, the owner of White Stiles Service Station at Shap Road, Kendal, said he had been criticised for raising his prices last week to 89.9 per litre of diesel, but said it was in response to an increase in the cost of fuel to him.

Mr Leviston, who buys Texaco fuel from a supplier, was still only making 2.91 pence per litre of diesel.

One customer told Mr Leviston he would shun the garage if he thought he was profiteering.

"If it was not for the shop this place would have gone under ages ago," Mr Leviston said.

Mr Leviston said as well as stiff competition from supermarkets, the big oil companies supported their own garages allowing them to sell cheaper fuel.

Kelvin Mashiter, of Hale Garage on the A6, who also has a contract to buy Texaco fuel from a supplier, agreed.

He said because of the pricing structure, other garages were able to sell fuel for less than he could buy it.

Texaco spokesman Paul Bray confirmed that the company had this week offered price support to independent garages until the fuel crisis was over.

This allowed White Stiles to drop its diesel prices to 81.9 pence per litre, and Hale Garage to be more competitive.

l Fears that already hard-pressed dairy farmers would have to ditch milk for want of tankers to collect it subsided this week as fuel supplies returned to normal.

Problems experienced by social services and other county council departments also abated.

Special schools Bleasdale House at Silverdale, Witherslack, Cedar House at Kirkby Lonsdale and Lowgate at Levens re-opened on Tuesday.

Wennington Hall residential special school was open as normal and, in fact, had never closed, as reported.

School secretary Liz Tilburn said the boarders remained and some day boys were brought in by parents after Lancashire County Council told the school to cease using its minibuses.

"We pulled out all the stops to keep open," she said.

Cumbria Tourist Board chief executive Chris Collier said she hoped the industry could now get back on course for the rest of the season after heavy losses last week.