Zimbabwean President Robert Mugabe has threatened to take over petrol stations owned by oil giants BP, Mobil and Caltex.

Mr Mugabe promised to handle the fuel crisis personally as chronic fuel shortages worsened over the weekend.

Mr Mugabe accused foreign oil firms of making excessive profits, and said the government was considering renationalising their filling stations.

"The government can acquire these points, compensate them [the oil firms], and distribute the fuel," Mr Mugabe said.

"There has to be quick action... we don't want the holiday mood of our people to be disturbed."

A BP spokesman said the company was aware of Mr Mugabe's comments but had no response yet.

Libyan talks collapse

Zimbabwe is close to running out of fuel, despite government promises that there would be adequate supplies for Christmas.

At the end of last week, officials from Libya - which currently supplies most of Zimbabwe's fuel - were in Harare negotiating with the government.

Libya has grown increasingly impatient with Zimbabwe's inability to pay on time.

Local journalists had suggested that Zimbabwe was trying to mortgage state assets in order to win access to Libya's fuel.

But the state newspaper, the Herald, reported on Monday that talks had collapsed.

Soaring prices

Zimbabwe has suffered chronic fuel shortages for two years, caused by a lack of foreign currency and mismanagement at the state-run monopoly NOCZIM.

Libya supplies 70% of Zimbabwe's petroleum-based fuels, with the balance provided by the Independent Petroleum Group of Kuwait.

Petrol is reportedly being sold on the black market for about 1,000 Zimbabwean dollars ($18; �11), 13 times the normal pump price.

Maintaining steady fuel prices is critical to the government's price freeze on basic commodities.

Zimbabwe is suffering its worst economic crisis since independence in 1980, while a lack of foreign currency has caused fuel shortages since 1999.

Some drivers are reported to be sleeping overnight in petrol stations in the hope of filling up their cars.