Diesel set to hit £6 A GALLON as fuel prices continue to soar

As oil prices on international markets rose again, motoring groups issued a fresh warning over the cost of fuel and council workers threatened strikes over having to pay so much.

Yesterday, diesel was averaging at  131.8p a litre. And the rate at which prices have been rising led to predictions that it will breach 131.9p a litre  -  or £6 a gallon  -  this weekend.

A petrol station in Worthing closes to customers during the height of the strike last weekend

Almost six out of ten filling stations are already selling diesel at this price or higher, according to price-monitor company Petrol-Prices.com. The highest price was 145.9p a litre, or £6.63 a gallon. Meanwhile, unleaded was yesterday averaging 118.45p a litre or £5.38 a gallon.

Motorists are paying more for diesel than any other country in Europe, apart from Norway, the Automobile Association said.

'It is astonishing that motorists in two countries which share the North Sea oil reserves pumped directly to their shores also pay the highest diesel prices in Europe.'
Prices are about 40 per cent higher than this time last year  -  increasing the pressure on the Government to abandon a proposed 2p a litre fuel tax hike in October.

Oil prices nudged a record of just below $140 a barrel, before falling back. But some analysts predict that the price will hit $200  -  which drivers fear means the £7 gallon is on the way.

Edmund King, president of the AA, said: 'Motorists did not panic at the pumps over the fuel shortages but there are now signs of panic and pain over the prices. The Chancellor should abandon any prospect of the 2p per litre increase and consider what other measures could be taken to help those low-income motorists and people dependent on the car.'

The AA wants the Government to abandon the tax hike and introduce a 'fuel regulator' which would cut duty when fuel prices rise.

A Shell garage near Cambridge was also forced to shut when it ran out of fuel

Petrol and diesel prices have risen at their fastest-ever rate over the last month as supplies were strangled by the four-day strike by Shell tanker drivers.

The walkout ended on Tuesday, when the strikers won a 14 per cent pay rise over two years.

The AA also believes drivers have been 'ripped off' because prices at the pumps remained inflated when an earlier strike by workers at the Grangemouth refinery in Scotland ended, even though the wholesale price of oil dropped ten per cent.

Council workers have threatened strike action unless their mileage rates are increased in response to soaring fuel prices.

The public sector union Unison said workers who have to use their own cars are left out of pocket.

Staff are paid from 36.9p a mile if they use their own car. Motoring organisations say rates should be nearer 58p to cover the cost.

Unison's Heather Wakefield said: 'Feelings are running high among our members, who are coping with a real pay cut and price increases.' T

he average price for diesel in the UK is set to breach the landmark  £6 a gallon barrier this weekend, motoring groups warned today.