Ingen titel

3p rise as petrol prices rocke

Byline: Ray Massey Transport Editor

PETROL prices are expected to rise by up to 3p a litre in the coming days and will pave the way for further increases, the AA warned last night.

The initial hike, which comes during the holiday season when many families make longer car journeys, is being blamed on rising wholesale fuel costs.

Pump prices have risen by a penny over the past fortnight and stand at 103.13p a litre for unleaded and 103.87p for diesel.

The 3p a litre price rises will see fuel at the pumps cost in excess of 106p Replica Roger Dubuis Watches a litre and will add [pounds sterling]1.50 to the average fill-up.

Britain's 30million motorists will face a further increase on September 1 when the Government imposes an additional 2p tax rise at the pumps, making a 5p a litre rise in total.

The tax increase will take the price of petrol to 108p a litre and comes in the wake of an Cheap Jade earlier 1.84p a litre tax rise in April this year. It will be followed by another increase in April 2010 of inflation-plus-1p.

On top of that, the Chancellor is to increase the rate of VAT from 15 per cent to 17.5 per cent in the New Year.

Rising prices of oil and an 8 per cent rise in the wholesale cost of fuel - both driven in part by speculators gambling on the market - are being blamed for the initial price increase.

The AA said the price of unleaded has soared from 90.6p per litre in March. Oil prices hit an all-time high of $150 ([pounds sterling]90) per barrel in July 2008. Yesterday U.S. light crude was trading at $71.40 ([pounds sterling]43), having earlier hit a six-week high of $72.42. London Brent crude was $74.41.

AA spokesman Luke Bosdet said: 'Many people are staying in Britain for their holidays to save money but they will face an extra [pounds sterling]1.50 to fill up their tank. It's the last thing cash-strapped drivers want.' The group says Britain's motorists are also being 'held to ransom' by speculators.

Oil speculators are already under investigation in the U.S. for making billions of pounds profit while driving up pump prices. This week UK financial watchdog the Financial Services Authority held a summit in London attended by UK Treasury and oil industry bosses.

AA head of public affairs Paul Watters said: 'Oil price rises have been largely driven by market speculators gambling on any hint of economic recovery. This has pushed up the price of petrol.

'It's time the UK got to grips with who is pumping up the price of an everyday essential.'