Petrol prices hit record high

City A.M. Reporter
British fuel prices rose to record highs in early April, despite a one penny cut in fuel duty last month, the Automobile Association said, after crude prices surged because of violence in Libya.

The average British petrol price has risen 15 pence to 135.8 pence per litre since last year's Easter holiday peak driving period, while the average diesel price is up 20 pence to 142 pence per litre, the AA said in its latest monthly report.

The Bank of England said in April that near-term inflation was likely to be higher than February forecasts due to energy and commodity price rises, warning there was still a significant risk that inflation would top five 5 per cent.

The government shaved a penny off fuel duty in its March budget. But the tiny tax relief is barely noticeable, while crude oil prices have risen nearly 50 per cent since April 2010 on unrest in the oil-rich Middle East and North Africa.

The UK has the 12th-highest unleaded petrol price in Europe and the third-highest diesel price, the AA said.