Service was stalled at the Shell gas station on Blue Hole Hill in Bailey's Bay after diesel was put into an underground tank instead of Premium gas.

Shell Bermuda CEO Philip Burton admitted a mistake had occurred at Jasco's at 1.15 p.m. yesterday. However, the blunder was not discovered until 3.15 p.m. after furious drivers with stalled vehicles called the station up to complain.

"A mistake has occurred. Senior management are at the scene and are taking any steps that are necessary," Mr. Burton said yesterday. "A review of the proceedings is being carried out."

When pressed on how the mistake took place, Mr. Burton said he did not know, but could not rule out errors by the driver of the diesel tanker or service station personnel.

"There will be an investigation into what went wrong," he said. "We have no answer yet. We will have a full procedural investigation. If necessary we will make changes to our procedures."

By 5 p.m. yesterday the station was closed to all customers who wanted to buy gasoline. However, it was still open to customers who wanted to purchase diesel.

"We will interview all persons involved in the delivery," he said. "This has not happened before since I have been here in the last four years.

"A small number of customers was affected and they are being contacted urgently," he said. "Shell will compensate customers for any loss suffered."

He said at least seven customers had been affected but the number could be greater.

One of these customers was a very upset Dion Simmons who borrowed a friend's car yesterday afternoon, but since it was nearly empty of fuel decided to fill it up at Jasco's at around 2 p.m.

However, she said she only made it past Stone Crusher Corner when the car started to cut out.

"Something in the car was clicking. It just kept jerking and clicking," Ms Simmons said.

"I had to push the car into the garage!"

"At first I thought it was my fault. I asked to speak to the gentleman who served me but he said it was impossible he put diesel in my car. The guy was so nonchalant. He had a bad attitude. He said he checked the receipt and there was no way they put diesel in the car."

However, three mechanics at the BAS garage told her otherwise, before it took them over two hours to drain the diesel from the car at a cost of $130, she said.

"I am upset because he said he did not do it," she said. "My girlfriend had to borrow someone else's car to pick up her child at 3.30 p.m."

She said there was at least two or three other customers when she visited Blue Hole yesterday.

"I know I am not the only person," she said. "I got a bill and it was not my fault.

Consumer Affairs Director Karen Marshall said yesterday she did not know of an engine contamination on this scale before.

"It has never happened to this extent," Ms Marshall said. "It does a lot of damage. It affects the engine quite seriously.

"We have had gas attendants using the wrong hoses at the station and the engines had to be flushed out," she said. "Usually they do not let you drive the car."She said every affected car will have to have the engine flushed, however, advised consumers to keep their receipts and contact Shell before taking their cars to be fixed, in case Shell wanted them to use a particular garage.

But Mr. Burton did not know whether a certain garage would be used and said Shell would provide its own mechanics if necessary.

Any customers that purchased gasoline should contact Jermaine Simons at 505-0288, Shell said in a release.

"Shell sincerely apologises for any inconvenience that this might have caused and that they will inform the public when the service station is able to dispense gasoline again," it said.