Falmouth Docks recently spent �4m to rebuild a wharf

It is estimated that it will cost Falmouth Harbour about �250,000 in lost fees and reduce its business by some 40%.

Between 300 and 400 ships use the port to obtain bunkers, or fuel or diesel oil, each year.

Chevron Texaco, which runs the contract, says changes are in the pipeline, but will not confirm or deny the reports.

Storage contract

Falmouth Harbour Pilot David Barnicoat said it could have a devastating effect on the whole town.

He said: "Ships arrive and not only do they take on bunkers, they buy charts, they buy provisions, people join and leave ships, they stay in hotels and use public transport to get to Newquay Airport.

"There's a whole knock-on effect throughout the port and the port's infrastructure."

Chevron Teaxaco spokeperson Jane Warton said: "Chevron Texaco have a bunkering and storage contract with Falmouth Oil Services based at Falmouth Docks.

"We can confirm that changes to that contract are under negotiation and discussions have been ongoing for 12 months.

"No annoucement has been made and its not our policy to comment on negotiations that are ongoing because of commercial sensitivity.