Miles Costello
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The prospect of petrol reaching £1 a litre returned today after crude oil prices broke through $80 a barrel for the first time since the 1980s.
Leading oil analysts said that a cold snap over the coming winter months, either in the UK or the United States, could add "a couple of pence" to forecourt prices for British motorists, while the Government is scheduled to increase petrol duty by 2p a litre next month.
The average price of a litre of unleaded petrol reached 95.2p yesterday, compared with 92.1p a year ago.
UK petrol prices surpassed £1 a litre most recently in 2005 after Hurricane Katrina restricted supplies of fuel to Britain.
Orrin Middleton, of Barclays Capital, said: "We, the end consumer, pay international prices. At the end of the day, the petrol retailers will pass on the market prices they have to pay.
"If we get a cold winter and we see some weakness of sterling against the dollar, it is possible fuel could return to those levels."
Crude oil surged to record highs yesterday, pushing through the psychologically important $80-a-barrel mark on supply concerns before closing at $79.91.
This week oil pipelines in Mexico, the fifth-largest producer, were attacked, adding to supply worries.
The oil price is coasting at its present high despite Opec's recent move to increase production by a modest 500,000 barrels a day.
Opec will next meet on December 5 in Abu Dhabi.
Today light sweet crude to be delivered next month fell slightly, trading 26 cents lower at $79.65 a barrel on the New York Mercantile Exchange.
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Public Transport is useless. Unless you're in the centre of London. If i dont have my car then i dont have a job, its as simple as that. Although with the high cost of petrol i think being on Jobseekers would see me better off. And i'd be taking money out of Mr. Browns pocket so its a viable option.
I dont know if anybody saw Top Gear the other week, but they were saying on there that £1 a litre is quite cheap considering what goes into bringing it here. And i recall James May saying he saw mineral water at £4.99 a litre.
In fairness its an interesting point, where the theory falls short is you dont buy 45 litres of mineral water a week do you.
By the way, The Government cant pass off these high prices on the Polar Bears. As price rises make no difference to consumption (or minimal difference) all it does it put more people out of pocket.
I honestly think the Government have forgotten they're here to benefit us. Not to ruin our country.
Martin, Ipswich, UK
Where I am we pay 91.9p a litre so we are quite lucky paying less than the average. I can see how ours can go up that much. It's ridiculous how they can fluctuate so much around the country. Sometimes tescos charge more than a tescos thats a mile away!
Chris, Huddersfield,
Nick, London
You can store bulk petrol, theres additives you buy to increase its shelf life to several years.
Diesel is much easy to store though, it lasts pretty much forever with no additives, it does need to be filtered after long term storage though.
Dominic, Manchester, UK
Here in Japan we pay about 60% of UK prices for unleaded regular petrol, and diesel is about 20% less than petrol. Everyone I speak to that has recently visited UK says the same, E X P E N S I V E. Just about everywhere you emigrate to (except Norway) has to be cheaper than UK.
Andrew Milner, Yokohama, Japan
Its a pity we can't store petrol in bulk because these prices are going to seem like a giveaway in 5 years time...
Nick, London,
Do a web search on "£1 a litre" and see how often this story appears during the year.
Stephen Edgerail, London, UK
Oil is priced in US$
Petrol is sold in £
The US$ is falling relative to UK£
This should cushion the UK from the full impact of crude price rises.
But if UK interest rates get cut then the £ will follow the $ as it slides down its slippery slope.
Rob, Kingston, Surrey
Glad to see Gordon rushing to help the economy as usual - a couple of pence on petrol will obviously solve all the economic problems he left behind when he moved from No11.
Mike Bibby, St Albans, England -not EU
this makes the public transport options sound more attractive so with more people considering the use why do prices increase?this just drives the customers away before they even get round to jumping on the bus. when petrol is high busses should be low. so many more people will use public tranport if it competes on price rather than relates. public transport for many is an elastic demand.
Gary Eagle, p'boro, uk
Maybe I missed something, but hasnt petrol fallen back a lot in the last few weeks?
I paid 91p a litre this morning, it was 98p 2 months ago.
Dominic, Manchester, UK