Price of petrol creeps up in 2009

The AA says drivers have been asking why prices are going up

The price of petrol at the pump has been steadily rising since the start of January, figures have shown.

The average price of a litre of petrol is now 90.48p and diesel 100.74p, analysts Experian Catalist said.

This compares to a recent low on 6 January of 85.89p for petrol and 98.06p for diesel.

However, the price of crude oil is now 40% lower than the last time petrol cost 90p a litre, back in March 2007, according to the AA.

Oil prices have tumbled by more than $110 since July last year. US light, sweet crude is currently trading at about $34 a barrel.

Angry motorists

The AA says it has been receiving calls from drivers asking why prices are going up.

"We can see from wholesale price data for last year that gasoline [petrol] market prices fell by 5-10% in January last year, yet petrol prices [at the pump] rose in the same period," said Edmund King, the AA's president.

"There may be perfectly valid reasons for the current price rises, but a repetition of last year's behaviour should not be happening again in times of dire family finances."

In October the top four supermarkets and other petrol retailers announced they were cutting their pump prices.

However, the AA fears that without the Christmas incentive to compete on price and attract customers, retailers will allow fuel costs to rise.

The UK Petroleum Industry Association said it did not comment on current pump prices.

But it said in general prices are influenced by "a number of factors, including taxes, crude oil and refined product prices, exchange rates and competition".