The AA warned motorists last night that they face a “winter of misery” as petrol prices rose to their highest levels.

Unleaded petrol reached an average of 98.57p per litre, exceeding last year’s record of 98.54p. Diesel is also at a record price of 101.29p.

Hundreds of petrol stations across the UK are charging more than £1 a litre and the AA said that motorists were spending £8.6 million more each day than in February, when fuel prices started to climb.

The motoring organisation added that the average cost of unleaded petrol could pass the symbolic £1 a litre mark within weeks, given the spiralling price of crude oil.

US crude reached a record $93.80 (£45) a barrel on Monday as fears of an invasion of northern Iraq by Turkish forces and mounting concerns over an oil-supply shortfall sent shockwaves through the markets.

Luke Bosdet, AA public affairs spokesman, said: “There is no clear indication of where petrol prices will stop. This makes £1 a litre much more likely and we could get there within the month. It could be a winter of misery for motorists.”

Oil prices have leapt by more than a third since mid-August in a rally that economists fear will feed through to inflation and hit economic growth.

Unleaded petrol rose from 98.08p per litre in just a week and is costing 15 per cent more than last year.

Prices have moved to within reach of £1 a litre before, most notably during the fuel protests of 2000 and after Hurricane Katrina two years ago. However, the AA said that without fierce competition from supermarkets the average pump price would already have passed this level.

Kevin Hawkins, director-general of the British Retail Consortium, said that the price surge could put further strain on high street stores before Christmas, given the growing pressures on consumers. He said: “It all depends how long oil prices remain at these levels. But what is happening to petrol is worrying and it’s something we could well do without.”

The City offered one ray of light yesterday. US crude was trading at $91.72 a barrel yesterday, down by 1.83 cents, before the publication of key data on the size of US crude oil stocks today.

The Opec cartel is due to begin pumping an extra 500,000 barrels of crude a day from tomorrow. However, the investment bank Goldman Sachs said that crude prices could still top $100 a barrel this year.

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