Price of petrol hits new high

Commuters have already been hit by rail fare rises and now motorists will be paying more at the pumps as petrol prices soar to a new high.

The cost of a litre of petrol is now 103.3p - beating the previous record of 102.92p set on Boxing Day.

The increase at UK petrol stations means that filling a typical 50-litre tank now costs £7.36 more than a year ago.

The AA said that diesel is now 107.95p a litre - just off the record of 108.00p set on December 6 2007.

AA public affairs head Paul Watters said: "The closure of superstores during the festive holidays, although many kept their petrol stations open, may account for the new record highs for petrol.

"However, with oil prices again rising above 95 dollars a barrel, the start of the year shows little sign of relief for UK motorists."

He went on: "We had hoped that petrol and diesel prices had hit a plateau that reflected the price of oil above 90 dollars a barrel.

"If the two new highs turn out to be blips, it will underline the importance of supermarkets in holding down the price of car fuels."

Oil prices rose by more than 50 per cent last year, also driven higher by speculative buying - traders betting that the price would rise - and investors using oil as a hedge against the weakness of the dollar.

The price hikes have also hampered the Bank of England's efforts to keep a lid on inflation.

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