Petrol prices set to rise further, says AA

Over the past fortnight, costs have risen by 1p per litre for petrol and 0.75p for diesel, according to the motoring giant.

Key Points

• 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."