Warning over rising petrol prices

Rising taxes and crude oil costs could push fuel prices to £8 a gallon, the RAC Foundation has warned.

With petrol stations in outlying areas such as the Orkney Isles already charging £1.50 a litre and motorists in northern parts of mainland Scotland paying £1.42 a litre, the motoring group has said that prices could go up to £1.75 a litre in some parts of the country.

The RAC Foundation spokesman Philip Gomm said: "For every $2 rise in the barrel of oil you tend to see an extra 1p at the pumps.

"Oil prices are presently $100 a barrel but that is still a long way off from the historic high of $147 a barrel before the recession in 2008.

"However, it doesn't need to go that high again for fuel prices to rise to £8 a barrel given the present price at the forecourts. Outlying areas face higher transport costs, which is one of the reasons the Government is considering introducing a Fair Fuel Stabiliser for rural areas."

However, the Government must take suitable measures before petrol prices hit £1.75 a pump in central and inner-city areas, which is possible if "the oil producing countries decide to turn down the taps," Mr Gomm said.

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