A BUSINESSMAN is suing a petroleum company for breach of contract and loss of up to £400,000 in a row over fuel prices.

Michael Rose owns Mister C garage and store in Helmshore Road, Haslingden, and the Mobil station, in Bacup Road, Waterfoot.

He claims that his supplier, Kuwait Petroleum, has breached its contract with him and is claiming losses of between £350,000 and £400,000.

Mr Rose, who lives in Manchester, said: "I did a deal with Kuwait Petroleum so that we could offer people in Rossendale competitively priced fuel. I am now hoping that the matter can be resolved before coming to court."

Mr Rose's case is based around his claim that the deal was based on an agreement that he was sold fuel at just over three pence a litre less than the price charged by the cheapest "marker" petrol station within a four-mile radius of his stations.

But he said the deal was changed so he was sold petrol at a price lower than the average price of the four stations, instead of just the cheapest "marker" station.

A writ issued by Mr Rose's solicitors, Wacks Caller, has been sent to the High Court. It said the deal was "contractually guaranteed" and confirmed by an e-mail sent by Kuwait Petroleum to Mr Rose.

It continued: "By charging the claimants a rate set by reference to the average price charged by the marker stations the defendant is in breach of contract. The claimants have on repeated occasions informed the defendant that it is in breach and has invited the defendant to act in accordance with its contractual obligations.

"The defendant has refused and continues to refuse to do so, and is therefore in continuing breach of contract."

Mr Rose said: "Hopefully the matter will be settled before it goes to court. Hopefully Kuwait on receipt of the writ will decide not to fight it."

A spokesman for Kuwait Petroleum said: "We cannot comment on something we have not had time to take legal advice on. We are in discussion with Mr Rose about this issue. We hope to resolve it amicably and without the need to resort to the legal processes."