Price at the pump hits an all time high
A LITRE of petrol has hit 96.85p, the highest ever average price in Britain.
And drivers were warned last night of further price hikes to come. An increasing number of petrol stations across the country, particularly in rural areas, are already charging more than £1 a litre for unleaded, equivalent to £4.55 per gallon. The rises coincide with the start of the family holiday season.
The soaring cost of petrol is being driven by rising oil prices. Fears are growing that they could soar above $100 a barrel if the Middle East crisis escalates.
Increases at the pumps in Britain mean that the average two-car owning family is paying an extra £19.38 for petrol every month. A Ford Mondeo, which in January would have cost £46.57 to fill up, is now £56.56 while topping up a larger Ford Galaxy has increased from £55.72 to £67.76.
Ruth Bridger, petrol price analyst for the AA Motoring Trust, said: "This new record high price for petrol comes right at the start of the holiday season and this is when the cost of petrol will begin to really hurt drivers.
"Until now, lower fuel consumption from driving in summer conditions, compared to winter, has absorbed much of the increased cost of running a car. Unfortunately, this will have masked just how much the cost of petrol has risen since the start of the year for many motorists."
The growing tension between Israel and the Lebanese-backed Hezbollah has sent shock waves through international markets, wiping billions off share prices and pushing up oil prices among the producing nations. The conflict is threatening the stability of the Middle East.
Brent crude reached a record $76.23 a barrel yesterday, sparking fears of further rises. As well as the Middle East, oil producers have expressed concern over supplies from Nigeria, where rebel attacks have targeted major pipelines.
Rebels, angry at what they see as international exploitation of their country, are demanding that more revenue is returned to local people.
Adding to instability in the oil markets is the continuing row over Iran's nuclear programme. In the Far East, North Korea's decision to walk out of talks with South Korea has worried the markets.
