PETROL PRICES HIT A RECORD HIGH

The cost of a litre of petrol at the pumps is now 103.3p - beating the previous record of 102.92p set on Boxing Day.

And with the price of crude oil rising above the 98 dollars a barrel level for the first time since November, there are fears of continued pain for British drivers.

Concerns over violence in Nigeria's oil producing capital and falling US stockpiles helped push the oil price up by more than two dollars in Asian trading. Light, sweet crude for February delivery rose more than two dollars to 98.30 dollars on the New York Mercantile Exchange (Nymex).

The price level came within touching distance of 100 dollars a barrel two months ago - when it reached a record 99.29 - on fears over US stock levels, a weak dollar and concerns over conflict in northern Iraq disrupting supplies.

Dealers are bracing themselves for a report due on Thursday which is likely to show the seventh straight weekly decline for US inventories.

The increase at UK petrol stations means that filling a typical 50-litre tank now costs £7.36 more than a year ago.

The AA said diesel was now costing 107.95p a litre - just off the record of 108.00p set on December 6 2007.

AA public affairs head Paul Watters said: "The closure of superstores during the festive holidays, although many kept their petrol stations open, may account for the new record highs for petrol. However, with oil prices again rising above 95 dollars a barrel, the start of the year shows little sign of relief for UK motorists."

He went on: "We had hoped that petrol and diesel prices had hit a plateau that reflected the price of oil above 90 dollars a barrel. If the two new highs turn out to be blips, it will underline the importance of supermarkets in holding down the price of car fuels."