Loyalist forces pounded Zuwarah with artillery before the tanks raced towards the town centre, Tarek Abdullah told Reuters by telephone from the coastal town 120 km (70 miles) west of the capital Tripoli.
"I am in the centre of Zuwarah. Gaddafi`s army is in the centre of Zuwarah now and the tanks are still advancing, I can see them," he said.
Zuwarah, a town of 40,000 people, had been generally quiet during the insurrection against Gaddafi`s four-decade rule that erupted last month.
Gaddafi`s forces lost control over large swathes of the oil exporting North African country initially, but over the past week the military momentum has shifted back in their favour.
The only major city held by insurgents in the west is Misrata, 200 km (130 miles) east of the capital.
Zuwarah residents had earlier said that people were fleeing their homes because the army was shelling the town heavily and shells were hitting their houses. The assault was coming from the west, east and south of the town.
During the artillery assault, an insurgent fighter named Abu Zeid said: "We are defending ourselves but we can`t do it for long. There are not enough weapons. It`s very bad here now." (*)
Editor: Kunto Wibisono
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