Petrol prices soaring

With further instability in the Middle East, crude oil prices look set to push up the cost of petrol to around £1 a litre.

Oil prices have stayed above $63 a barrel today, close to their all-time high following the threat of terror strikes in Saudi Arabia, revelations concerning Iran's nuclear programme, and refinery breakdowns in the US.

Over the year so far crude oil prices - which reached record highs of $64.27 a barrel yesterday - have increased by 50 per cent. This has, in turn, pushed up the price of petrol for British consumers.

Since the start of the year the price of petrol at UK pumps has increased by ten pence a litre on average - with unleaded petrol costing more than £1 in some areas, the AA has said.

But while recent developments in international politics have driven the recent rise in oil prices, an underlying increase in the demand for oil - driven by growth in the Chinese market - looks set to push oil prices higher for some time to come.

And petrol prices in UK garages increase by around one pence for every $2-$3 oil prices rise.

So far this year the cost of motoring for an average family has increased by £23.32 a month on the back of rising oil prices, the AA revealed, but this increase appears to have not affected British drivers.

"There seems to be no sign of a slowdown in people using their cars for business and pleasure," said Ruth Bridger, of the AA Motoring Trust.

But for people feeling the pinch, the AA produced a series of tips to allow people to cut down on petrol use, while still getting about.

Measures motorists can take include:

• Stick to the speed limit on motorways instead of driving over 80mph. This saves 40 pence every ten miles or a litre of petrol every 20 miles.


• Moderate the use of air conditioning, which adds ten per cent to fuel consumption. Air vents may do the job just as well on cooler days, early mornings and in the evening.


• If you have two cars, use the smaller more frugal car for errands and shorter single or two-person trips.

With a new registration plate change in September, prospective buyers can choose cars with much better fuel economy. With cars priced up to £10,000, the difference between the most and least economical models is a potential saving on fuel costs of around £12 per week. For cars priced £20,000 to £30,000, the weekly saving is potentially more than £34.