Shell adds a penny to price of unleaded

The oil company Shell risked the wrath of motorists last night by adding a penny to the price of a litre of unleaded petrol.

The oil company Shell risked the wrath of motorists last night by adding a penny to the price of a litre of unleaded petrol.

The announcement, which the firm put down to an increase in the price of refined oil, came a day after the Government said it would cut duty on unleaded petrol by 2p a litre until June.

A spokeswoman said that the new prices, which are being introduced in 900 of Shell's 1,100 forecourts, do not pass on the full increase of 3-4p a litre to the consumer. She added: "In the past few weeks the cost has increased significantly, which has squeezed our margins and forced us to put up the price."

Earlier this month, Shell's reporting earnings - which the Anglo-Dutch giant uses as its equivalent to profits - had increased to £9bn, almost double last year's figure.