Petrol prices look set to rise at the pumps, bringing more pain for hard-pressed motorists, warns the AA.
Over the past fortnight, costs have risen by 1p per litre for petrol and 0.75p for diesel, according to the motoring giant.
- Prices up a penny this year already
- AA predicts further hikes
- Piles misery on hard-pressed motorists
The AA says a 7% rise in the wholesale price of petrol (the price providers pay for fuel) due to instability in many oil-producing countries, points to a further 1p increase at the pumps.
If this happens, a 2p rise this month will add £4.25 to the monthly cost of a family with two petrol cars.
The rises bring the average petrol price just 4p shy of its all-time high seen in May last year, while diesel is also now within 1.5p of its highest ever price, again recorded last May.
A litre of petrol now averages 133.54p, compared to 128.14 a year ago, while diesel currently averages 141.90p a litre, compared to 132.53p a year ago.
The news comes on the back of alarming figures released yesterday showing car insurance premiums have risen by 50% over the past two years (see the Car insurance up 50% MSE news story).
AA president Edmund King says: "The AA thinks that, with continued instability in the Middle East and other oil-producing regions, drivers should be prepared for short-term price surges this year."