Petrol in London most expensive in the country

It is the highest rise in Britain and means that for the first time drivers in the capital are paying more to fill up than those in the regions.

Traditionally, intense competition on London forecourts has kept prices lower than elsewhere.

Today, however, the average price of a litre of unleaded petrol in the capital is about 111.3 pence per litre compared with 110.8 around the country, according to the AA.

It means that the average cost of a full tank of petrol in London now costs £55.65 - 25 pence more than elsewhere.

Experts believe prices have been boosted by a number of factors.

Supermarkets that have traditionally used lower fuel prices in the South-East as a loss-leader to lure consumers have instead switched to other incentives.

But Asda, which has a small number of outlets in London compared with elsewhere, has continued its petrol price-cutting, helping to hold fuel prices down in other parts of Britain.

Supply of fuel in the South-East has also suffered because of continued disruption at the Buncefield fuel depot in Hemel Hempstead. It was wrecked by a huge explosion in December 2006 and is still not back on stream.

Across Britain, motorists have been hit with petrol price rises of 16.4 per cent over the past year.

A massive rise in the number of diesel cars being bought by motorists has also forced up demand for - and the price of - diesel.

Proof of the price differential came as an Evening Standard survey revealed that the costliest fuel in London is on sale at the Chelsea Cloisters forecourt in Sloane Avenue, where motorists are paying 139.9 pence per litre for unleaded. It contrasts sharply with the cheapest - the Esso forecourt at Plumstead High Street - where drivers pay 106.9 per litre. Luke Bosdet of the AA said: "We now need to ask why fuel is more expensive in London - and how much longer it will continue."

Louise Doherty, of Petrolprices.com, said motorists across the country should brace themselves for worse to come. "When the US driving season gets under way this summer that will put further pressure on fuel prices," she said. "It means we shall come closer to our prediction that unleaded petrol in parts of the UK will be at £1.50 per litre by September."