Petrol Price Warning As Retailers Forecast Hikes
Fuel prices are set to rise by as much as 5p a litre, according to the Petrol Retailers' Association (PRA).
It comes amid civil unrest in Syria and Egypt as well as a reduction in Libya's oil exports, which are down by a third.
The PRA's forecast follows a rise in Brent crude oil, which pushed past the $110 a barrel mark last week, a 10% increase since the end of June.
Goldman Sachs Group has also predicted that oil prices could go up to $115 a barrel in the 'very near term'.
Brian Madderson chairman of the PRA said: "UK petrol prices have not yet seen the full impact of this crude oil increase due to the rapid and slightly unexpected revaluation of pound sterling from $1.48 to $1.56.
"Therefore it was concerning to read recent comments from the City that the 'pound is overblown' and will soon come hurtling down towards the $1.45 level."
He added: "We calculate at current wholesale prices that this will add a further 5p per litre at the pump before the end of September and hit businesses and households in the pocket at a time when pundits are forecasting a continued increase in retail sales to drive growth in the economy.†
"Should the Middle East tensions escalate further and crude oil prices react accordingly, the Bank of England's new inflation targets could be significantly challenged.
"The sooner the EU Competition investigation into allegations of oil price fixing is completed, the more certain we can be that our retail fuel prices are only being influenced by macro-economic and political factors and not anti-competitive actions of the oil companies."
The average price of petrol across the UK is currently £1.37 a litre, according to Experian†Catalist.
The PRA explained that if its predictions are right and prices rise, it will be fast approaching the record high of £1.42 a litre, which the nation saw in April.