Petrol prices are set to rise by 5p a gallon as oil and pump prices hit new record highs spurred by the conflict in the Middle East.

 

The Petrol Retailers' Association said motorists should brace themselves for an immediate ovenight hike of 5p a gallon - 1 p a litre - with worse to come.

 

But if a full scale Middle East war breaks out then 'the sky's the limit' said PRA executive Ray Holloway.

 

Motoring groups warned that the average price of petrol is set to soar above £1 a litre - towards £5 a gallon - after it hit record highs in the UK.

 

He said: "Motorists face a tough few months. Demand for oil is high at this time of year because its when Americans take to the road for their holidays. The tension in the Middle East is driving up the price. Hurricanes hitting oil fields is another worry.

 

"If there's a full-scale war, then the sky's the limit. Anything could happen to the price. Some analysts are even talking of oil hiting $200 a barrel."

 

He was speaking as oil hit a new record of $78 a barrel in New York and London. The cost of unleaded is set to rise 1p a litre overnight from 97p to 98p a litre, he said.

 

It is the first time that the average price at the pumps exceeded 97p, and with the cost of crude now spiralling to new levels amid intensifying violence in the Middle East.

 

Crude oil traded at more than 78 US dollars a barrel yesterday (FRI) driven by growing tensions in the Middle East where fighting between Israel and Lebanon has escalated.

 

The conflict in Nigeria has also seen oil installations targeted, while the diplomatic stand-off between the West and Iran has added to fears over the security of oil supplies.

 

Energy analyst Victor Shum, of Purvin & Gertz, said: "We are certainly in uncharted territory."

 

The AA Motoring Trust said it could break the £1 a litre barrier by the end of the month. Its petrol prices analyst Ruth Bridger said: "If oil prices edge over the 80 US dollar a barrel mark, we will certainly see diesel go over £1 a litre and petrol will follow later in the summer."

 

Oil prices rose in August and September last year after hurricanes Katrina and Rita wreaked havoc in the Gulf of Mexico and damaged a number of refineries. Miss Bridger said: "If you throw all of this into the mix, you come out with higher oil prices."

 

She added: "The current oil prices are at an all-time high and they will start flowing through to the pumps in the next two or three weeks.

 

"Today, oil is trading at 78 US dollars a barrel and that will take two or three weeks to filter through. If the political tensions in the Middle East continue, then oil prices will remain high."

 

http://www.dailymail.co.uk

I paid nearly $4 USD for a gallon of regular yesterday!!!!!!!!

 

insane this is!! INSANE!!!

I wouldn't mind but depending which petrol station you got to depends upon the price. There's no point me getting petrol at the Tesco near my house as its almost £5 a tank more expensive than the Tesco near work!! Wouldn't mind if they were different companies but I don't see how the same company can justify such different prices at stores within 8 miles of each other!!

I wouldn't mind but depending which petrol station you got to depends upon the price. There's no point me getting petrol at the Tesco near my house as its almost £5 a tank more expensive than the Tesco near work!! Wouldn't mind if they were different companies but I don't see how the same company can justify such different prices at stores within 8 miles of each other!!

 

You think that's bad, in andover the cheapest place for diesal (BP) is 98.9 pence per litre, with tesco at 99.9

 

23 miles away, diesal is selling at 93.9 pence per litre.

 

Although the limit is with old pumps where the max they can go upto is 99.9 pence per litre :laugh3:

I paid nearly $4 USD for a gallon of regular yesterday!!!!!!!!

 

insane this is!! INSANE!!!

 

*Shock Horror*

 

$4 a gallon!