BP puts up cost of petrol

BP has increased the cost of a litre of petrol in the UK by 1p, following rises in the price of crude on the world oil markets.

The move means a litre of petrol at a BP station will now typically cost 74.9p a litre.

Tension in the Middle East, together with output cuts by members of the Opec oil cartel, has pushed the price of crude oil to six-month highs of around $28 a barrel.

The company also issued a gloomy trading update, which said margins at its refining and marketing divisions had plunged during the first three months of 2002 to their worst level for a decade.

Refining margins were 30% lower than the last three months of 2001, hit by a fall in demand due to a warm winter and lower jet fuel use following the downturn in the aviation industry.

And BP said retail marketing margins were 45% lower after they suffered from "low demand, high stock levels and intense price competition".

BP shares closed down 15p at 610p.