Warnings of more petrol prices rises to come

Motoring organisations warned today that another rise in petrol prices was inevitable after the latest 2p-a-litre rise in forecourt prices.

Motoring organisations warned today that another rise in petrol prices was inevitable after the latest 2p-a-litre rise in forecourt prices.

With the continuing global increase in the price of oil, which reached $35 a barrel, another rise of 2p a litre rise could follow by the weekend.

The recent average price of petrol until this week has been just under 80p a litre (about £3.65 a gallon).

However, within weeks, it could rise to nearly 87p a litre, or almost £4 a gallon, critics fear.

Oil producing countries OPEC will be meeting in Vienna to discuss the issue on Sunday.

But boycotting organisation Dump the Pump said even the £5-per-gallon watershed will come sooner rather than later.

Organiser Garry Russell said: "It's bad news for the British motorist and it's a further knock-back for us. I knew this was going to happen and the £5 gallon will be with us a lot sooner than people realise.

"I feel that this is just the start of the increases again. I think between now and Christmas, the price on the forecourts will be at the level before the campaign started of 92p per litre.

"We knew the prices were going to increase but we are surprised they have gone to this high. It brings us back down to the fact that we are still paying the highest prices in Europe.

"The biggest problem is that we are paying 35% duty," he added.

The Petrol Retailers' Association defended the hike as "necessary".

Director Ray Holloway said: "Rising prices is an essential part of actually sustaining the business. If you are not making a profit, you are not sustaining the business.

"Another rise is absolutely justified, there is no doubt about that. The justification would probably be for about 3p-per-litre at this time, but that would be a difficult story to sell to the motoring public and therefore I think we are much more likely to see a 2p increase, and imminently," he added.

The main problem was that three-quarters of the price of petrol in Britain was tax, Mr Holloway said.

Other motoring organisations expressed dismay at the expected rise in driving costs.

Michael Johnson of the AA said: "If the increase does take place, motorists will be bitterly disappointed.

"They will be extremely bewildered at best and very angry at worst. It always hits the person at the pump.

"We have the highest prices in the developed world and this is going to give nobody any joy."

The Vienna meeting on Sunday is expected to discuss the increase in production in order to bring down the price of oil, despite the fact that it may take time to filter through to the motorist.

The RAC is calling on the Government to bring the price down by 2p to counter the global increase.

Spokesman Edmund King said: "When the world price increases, the oil companies are very quick to pass on the price to the consumer. But when the oil price goes down, they are actually very slow to reduce prices.

"They could do it without losing money from hospitals or education," said Mr King. "They are getting the tax through VAT.

"This really hits those who are dependent on the car, particularly the elderly and the disabled in rural areas because they do not have the public transport alternatives.

Britain has the highest fuel prices in Europe, leading the pack by 10p per litre more than second place France.

Oil prices have risen to 35 dollars (£24) a barrel - the highest it has been since last November, according to the RAC.

Supermarket chain Sainsbury's said later it would hold its current nationwide petrol price at 77.9p per litre on unleaded fuel and 81.9p per litre on diesel until Tuesday.

"We want to keep prices as low as possible for our customers, but given the rise in the price of crude oil, unfortunately we may have to raise our pump prices on Tuesday."