Oil price rise threatens bigger petrol bills

Ananova: 

Motorists could face higher petrol bills after the price of oil hit fresh two-year highs.

Mounting tension over Iraq and a continuing strike in Venezuela helped push the cost of crude up, and City analysts warned that the increase could feed through to petrol prices if the increase was sustained.

BP has confirmed that it was increasing the price of petrol in some of its stations by 1p per litre, taking the average across the country to about 74.8p per litre.

Supermarket chain Safeway also announced a price rise - up an average 2p a litre from New Year's Day to about 74.9p for unleaded fuel.

Other companies will be under pressure to follow suit if the increase in the price of crude on the world markets continues.

In trading today, the oil price in London surged to above the 31 dollars a barrel (£19.38) barrier before slipping back to 30.40 dollars (£19) - up 24 cents (15p) on the day.

A BP spokesman said: "Some forecourts in the low to mid price range have been selling petrol for anything from 71p per litre.

"We are in the process of moving this price up by 1p per litre in about 200 sites. This will bring the average for all stations to something in the region of 74.8p per litre."

A Safeway spokesman defended its 2p per litre rise, saying: "We expect that with the current climate of uncertainty in the oil market other companies will follow suit in the next couple of days."

Story filed: 18:23 Monday 30th December 2002