Fury on the forecourts as petrol prices stay high despite PM's threat

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The Prime Minister demanded garage owners lower their prices or face an inquiry for failing to pass on the fall in global oil prices.

Three companies Morrisons, Asda and BP led the way by dropping unleaded to under £1 a litre. But despite the stark warning, drivers in the capital were today still facing high petrol costs. Texaco's Chelsea Cloisters, in Sloane Avenue, the country's most expensive petrol station, is charging 129.9p a litre for unleaded almost 23p a litre more than the London average of 107.6p and 139.9p for diesel.

Taxi driver John Hovis said: "If you are running low on fuel it is a convenient place to stop. The price is high but what can you do? This place has always been dear." A spokesman for Chevron, which supplies the garage, said: "The forecourt is owned by an independent operator and we have no involvement in pricing."

However, a source close to the owner said the prices were high to offset rent in the area and insisted residents were happy to pay to have a local pump.

Despite BP saying it was cutting fuel to 99.9 per litre "at a number" of outlets drivers were still paying 110.9p a litre for unleaded in Park Lane and 108.9p in Shepherd's Bush Green. Many drivers were going out of their way for a better deal.

Keely Spicer, 24, from Stepney, drove to the Isle of Dogs to fill her tank. She said: "I live nearer to a Sainsbury's petrol station but I come here because it is worth it.

"It's disgusting that I have to detour to get petrol at a reasonable price but it works out cheaper in the long run."

Humphrey King, 45, from the Isle of Dogs, said: "I used to go to Sainsbury's but it cost so much it made me angry.

"The prices should definitely come down, if Asda can do it, why can't everyone else?"