UK petrol prices reach record high

Petrol prices have hit a record average level of 121.76p for a litre of unleaded petrol, according to the monitors Experian Catalist. It is expected that fuel prices will rise further in January once increased fuel duties and the higher VAT rate come into play.

Experian Catalist estimates that higher VAT will add 2.5p and fuel duties will add a further 1p a litre to prices. The diesel price of 125.73p a litre is 8p away from its record of July 2008. The records referred to do not take account of inflation.

AA president Edmund King said the record high petrol prices were partly down to the freezing weather disrupting fuel deliveries.

The price of oil - currently at about $90 a barrel - has been trading at its highest level for this year and is also putting pressure on fuel prices.

The AA said the record fuel prices meant motorists would have to pay an average of almost £6 more to fill an average tank compared with the start of the year.