Petrol is Rising to Pounds 1 a Litre

MOTORISTS were yesterday facing fresh hikes in the cost of petrol, with retailers fearing pump prices would break through the pounds 1 a litre mark within the year.

Hurricane Katrina forced up the wholesale price of petrol by 8p a litre last week and led to drivers being charged more for refuelling their cars at filling stations.

Shell was among the retailers to increase the price of a litre of unleaded petrol last week to an average of 94.5p at its 900 forecourts in the UK.

With pounds 1 a litre looming as the norm in the UK, it has sparked fears that pumps will not be able to display figures higher than 99.99p a litre.

This could mean oil giants including Shell and rival BP having to spend millions of pounds upgrading the software that services the pumps.

Retailers are under pressure as much as drivers because the rise in prices has not generated any higher profits