Bounty

Drivers could see an 8% hike in petrol prices at the start of 2011, it has been predicted.

Prices may even increase by 3% before the August Bank Holiday weekend, the Retail Motor Industry Independent Petrol Retailers Association (RMI Petrol) has revealed.

RMI Petrol attributed the sharp jump to increases in world oil prices and predicted rises in currency markets.

RMI Petrol, which represents around two-thirds of Britain's 9,000 petrol forecourt sites, said petrol prices could rise as high as 125.9p per litre in the new year, smashing the current record high of 121.61p. This increase would take into account the rise in VAT and the planned hike in fuel duty.

RMI Petrol chairman Brian Madderson said: "The rebound in crude oil pricing is disappointing but not entirely unexpected. It will further increase pressure on independent retailers who are fighting for survival, especially in rural areas, due to the double hit of falling volumes and tighter margins.

"This crude oil increase will feed through the supply chain and could result in prices going up by as much as 4p a litre in the next three weeks."

Copyright Press Association 2010