Petrol prices to reach new high in April

If you're already dreading the weekly trip to the petrol pump there is more bad news today. Experts have warned that the price of crude oil could soon break the $100-a-barrel mark as global demand continues to grow.

Man with petrol pump
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Retailers have warned that come April 1, petrol and diesel could soar by up to 8p a litre because of the rising oil prices. That means motorists could soon be forking out £1.36 a litre for unleaded and £1.40 a liter for diesel.

With the automatic "escalator" rise in fuel duty adding 5p a litre to the cost of fuel as of the new financial year, petrol retailers have written to Chancellor George Osborne urging him to abandon the increase.

And yesterday, during Prime Minister's Question Time, MPs were putting more pressure on David Cameron to consider the introduction of a "fuel-stabiliser", whereby the duty on fuel prices is cut when crude oil costs rise (and vice versa), keeping the pump prices on an even keel.

Mr Cameron said: "Yes, the Treasury are looking at this because clearly there is a case for saying that as the oil price rises, if it can be shown the Treasury benefits from extra revenue, there should be a way of sharing that with the motorist who is suffering from high prices."

The Conservatives first suggested a "fair fuel-stabiliser" prior to last year's election but the plan never materialised. Though Mr Cameron discussed the topic once again last week, he later told the BBC: "I don't want to raise people's hopes too far because it is a difficult issue."

But AA spokesman Luke Bosdet told the Daily Mail: "Motorists are punch-drunk with these relentless price rises. They are driven by greedy speculators playing the markets and pushing up the price of oil, and therefore petrol and diesel. The pips are squeaking."

What do you think? Do you agree that the Government should introduce a fuel-stabiliser and will you be boycotting the petrol pumps come April? Leave your comments below...