Diesel prices see sharp increase

Motorists have been hit by petrol and diesel price rises this year

Diesel prices saw their biggest monthly increase in a decade in May, says motoring group the AA.

The average price of diesel between mid-April and mid-May increased 6.76 pence, or 5.7%, to 124.17p a litre.

And the average price of petrol at the pumps has risen 4.49 pence a litre, with the cost now 112.55p a litre.

Diesel prices are rising as crude oil has hit record highs above $134 a barrel, due to supply fears and an investor shift towards commodities.

As the dollar has weakened, investors are seeking alternative forms of investment and oil is cheaper to buy in relative terms.

The latest figures follow an earlier AA survey which suggested that high petrol and diesel prices were making UK drivers decide to travel less by car.

In its earlier poll of 17,500 members, the AA found 16% had decided to travel less by car.

Wednesday's survey showed that London was the most expensive place to buy petrol at 113.p a litre while the cheapest place was in Humberside and Yorkshire at 111.6p.

Edmund King, president of the AA said: "The price rises in recent days were of a magnitude exceeded only in the aftermath of Hurricane Katrina, when the price of petrol rose almost 3.5p in a week."