Petrol price set to rise again
THE price of unleaded petrol could rise by 1p a litre by the end of the week after oil prices hit record highs. Diesel will go up by 2p a litre by the start of next week, retailers predicted.
At the same time, air travellers were told to expect ticket prices to rise as airlines put up fuel surcharges.
The warnings came after the price of crude oil pushed through the $54 mark in New York for the first time, peaking at $54.45. North Sea Brent crude oil, traded in London, reached a new peak above $51.
The AA said the cost of unleaded petrol was now at an average 83.46p a litre following a rise of 1p a litre in a week.
But the Petrol Retailers' Association warned there was another similar rise in the pipeline which will push average prices to 84.5p a litre by the weekend.
It means prices are now hovering around and exceeding the 85p level seen at the time of the fuel protests in 2000.
Some analysts believe oil will hit $60, pushing pump prices towards the £4 gallon.
The price rises are being blamed on a series of crises including instability in Iraq and the Middle East and little scope for the Organisation of Petroleum Exporting Countries (Opec), the Arab oil cartel, to boost supplies.
Europe's airline industry association said yesterday that surging oil prices will 'wipe out profits' for airlines this year.
British Airways, Virgin Atlantic and Air France have already made big increases in fuel surcharges on air fares. BA nearly doubled a surcharge on long-haul flights from £6 to £10 per flight - or £20 on every return trip.
