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Petrol price 'to hit record high' Petrol price 'to hit record high'
(about 2 hours later)
Petrol prices could hit a record high of £1.20 a litre in the next few weeks, according to the AA.Petrol prices could hit a record high of £1.20 a litre in the next few weeks, according to the AA.
Increases in the wholesale price of petrol since January are to blame for the rise in forecourt prices, the motoring organisation said.Increases in the wholesale price of petrol since January are to blame for the rise in forecourt prices, the motoring organisation said.
It urged the Chancellor, Alistair Darling, to postpone the introduction of a planned 3 pence rise in petrol duty due to come in on 1 April. It urged the Chancellor, Alistair Darling, to postpone the introduction of a planned 3p rise in petrol duty due to come in on 1 April.
The AA said families now pay £52 a month more on petrol than a year ago. The AA said families now paid £52 a month more on petrol than a year ago.
The average petrol price is currently just over £1.15 a litre.The average petrol price is currently just over £1.15 a litre.
"The UK is barely out of recession, yet petrol prices threaten to rise to record prices seen during the boom of 2008 - shortly before the collapse into recession," said AA president Edmund King. AA president Edmund King told the BBC: "We all know government finances are in dire straits but a 3p rise in fuel duty is not good for the economy and could fuel inflation."
"If families, drivers on fixed incomes and those on low pay were unable to cope with record prices then, they are even less likely now." He said that the cost of wholesale petrol had risen by 17% in the past month, and this had not yet been passed on fully at the pumps.
Therefore, the price of petrol could hit £1.20 before 1 April, he said.
'Complete disgrace''Complete disgrace'
The price of oil is a major determinant of the price of petrol, and yet the current oil price of about $80 a barrel is far below the $147 a barrel-high seen in the summer of 2008, the last time petrol prices neared £1.20 a litre. The price of oil is a major factor in the price of petrol, and yet the current oil price of about $80 a barrel is far below the $147-a-barrel high seen in the summer of 2008, the last time petrol prices neared £1.20 a litre.
This has led many to question why petrol costs so much right now.This has led many to question why petrol costs so much right now.
Lindsay Hoyle, Labour MP on the Commons business committee, told the Daily Telegraph: "Crude oil has gone up this year, but nothing like the rise in petrol prices. Motorists are being legally mugged at the forecourt by petrol companies."Lindsay Hoyle, Labour MP on the Commons business committee, told the Daily Telegraph: "Crude oil has gone up this year, but nothing like the rise in petrol prices. Motorists are being legally mugged at the forecourt by petrol companies."
He called the current high price of petrol a "complete disgrace".He called the current high price of petrol a "complete disgrace".
Analysts said increased refining costs and the weakening of sterling against the dollar - the currency in which oil is priced - helped to explain some of the increase in petrol prices.Analysts said increased refining costs and the weakening of sterling against the dollar - the currency in which oil is priced - helped to explain some of the increase in petrol prices.
Mr King said a lack of refining capacity in Europe had contributed to the rise in wholesale prices.
"The oil industry needs to look at refining capacity to keep costs down," he said.
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