BOAT owners are seeing red over fuel hikes that they fear could hammer the marine industry, tourism and local economy in South Dorset.

They have warned that the price of red diesel is poised to treble from 30 pence to 90 pence a litre under a European Union directive.

Members of the Royal Naval Sailing Association, Royal Yachting Association and the Weymouth Harbour Users Association have joined forces with South Dorset Conservative Parliamentary spokesman Ed Matts to protest against the move.

Mr Matts said: "A hike in red diesel would be the final nail in the coffin of the local economy. If the price of diesel for boats trebled overnight there would be serious consequences for local boat owners, the local economy and tourism.

"All of which are so important to our economy that the effect could be very damaging locally"

Private and leisure craft currently use diesel dyed red, costing about 30 pence a litre under a low fuel duty from the EU known as derogation.

But protesters say that special status is due to end on December 31, 2006, unless the Government can win an extension.

They claim the increase could place lives at risk at sea but also lead to fewer people buying boats, less business at the resort's thriving marina and some people quitting boating altogether.

They warned that there could be a knock-on effect on restaurants, pubs, shops, tourism, chandlers and engineers.

Terry Phillips, chairman of the Weymouth Harbour Users Association, said: "If this happens, it will severely damage the marine industry, harbour and everything connected with it.

"The hub of this town is the marina.

"Reduce that, then there will be a reduction in the amount of money coming into the town and spent in the local economy."

There are about 210 boats in the commercial fleet in Weymouth as well as about 500 private craft.

Mr Matts said the Government must apply for an extension by June.

John Healy, a Treasury MP, has said in the Commons that the Government is aware of the issue and will discuss it with other EU states closer to the end of 2006, after talking to boat owners.

Stephen Cutsforth, managing director of Luhrs Marine at Osprey Quay, said: "As a distributor of power boats we would be seriously concerned by a possible hike in the price of diesel.

"But the effect would be much wider than just boat manufacturers or distributors.

"Exciting things are happening locally with a new 600-berth marina.

"This would be severely impacted at a crucial early stage as would the repair shops, restaurants, grocery stores and any other businesses that supply boat users, for the simple reason that many boat users would certainly be inclined to give up."

Nichola Lane, from Weymouth Yacht Club and chairman of the Portland branch of the Royal Naval Sailing Association, feared lives could be at risk if the fuel goes up.

She said: "I am concerned about the safety aspects.

"People may not maintain their boats because they have to spend money on fuel.

"More rescues at sea will be needed but boat owners may think twice about going out of their way when they hear a mayday because of the fuel cost."