U.K. PETROL TO HIT $11.85 A GALLON IN WEEKS
£7.50 A GALLON ‘IN JUST WEEKS’
Filling up may cost £111
Tuesday February 21,2012
By Dana Gloger Consumer Affairs Editor
RISING oil prices caused by tension with Iran could send the price of fuel soaring to almost £7.50 a gallon.
The cost of a barrel of crude yesterday hit an eight-month high of $121 and last night motorists were warned pump prices could shoot up by 20p a litre within six weeks.
That would take petrol to an average of £7.07 a gallon and diesel to £7.42, their highest-ever level. It would cost over £111 to fill a typical family car with diesel.
Fuel is already 15 per cent more expensive than 12 months ago and diesel last week hit a new record high of 143.05p per litre. The warnings came after Iran yesterday said it was cutting exports at once to Britain and France in retaliation for EU sanctions over its nuclear programme.
Ahmad Qalehbani, head of Iran’s state oil company, warned other European countries could also be hit if they continued “hostile acts”.
That would be another blow at a time when turmoil in oil-rich countries including Syria, Sudan and Nigeria is affecting supplies and keeping crude oil prices high. Analysts J.P. Morgan yesterday said prices could continue rising for the next 12 to 24 months.
Ahmad Qalehbani, head of Iran’s state oil company, warned other European countries could also be hit if they continued “hostile acts”
Calling for Chancellor George Osborne to cut fuel duty in next month’s Budget, Peter Carroll of FairFuelUK said fuel could go up 20p a litre “within six weeks”.
He said: “It would lead to surging unemployment, a return to recession, a growing deficit and years of economic misery. It could make us the next Greece.”
The Daily Express is calling for a 5p-a-litre fuel-duty cut and has teamed up with FairFuelUK for a national day of action on March 7.