High petrol prices for the "foreseeable future"

Petrol could cost more than 80p a litre for the "foreseeable future" as oil prices continues to soar.

03:09 04 August 2004

Petrol could cost more than 80p a litre for the "foreseeable future" as oil prices continues to soar.

Richard Freeman, spokesman for the AA, said motorists were going to have to live with petrol prices witnessed during the fuel crisis a few years ago.

"Certainly in the short to medium term it looks like the pressure will continue."

With fears of a slowdown in output from Russia, terror attacks against "iconic" financial institutions in America, the price of a barrel of crude in New York rose to a 21-year high yesterday, pushing past the $44 mark.

Adding to the energy woes, the consortium of oil producing nations, Opec, said it had no spare capacity to take the heat out of the oil price.

Some fear analysts forecast prices could rise further, possibly beyond $50 a barrel by year end.

Mr Freeman called on Chancellor of the Exchequer Gordon Brown to look again at the taxes levied on fuel.

"If we get to the stage where diesel gets higher it will not come down. It will remain above 80 pence. That hits every family in the country. Most people have no option but to drive their cars.

"The Chancellor needs to keep looking at the level of tax that he has got on fuel. At 75 per cent it is very, very high, amongst the highest in the world."

He encouraged Mr Brown to reduce tax in the long term.