Shell blames the jump in the cost of crude oil for the increase. The price hike is being introduced in 800 of its 1100 UK forecourts, to bring them in line with the remaining 300 which saw a similar rise last week. Plans by Opec to cut production have triggered a rise in crude oil. Despite the high cost of fuel at the pumps, profits at petrol stations is surprisingly low. Currently they only make about three pence for every litre sold.
Analysts believe a viable retail margin is between four and five pence per litre.
Shell says, therefore, that it has no choice but to pass the crude oil price rises onto drivers. Tax on lead replacement petrol also dropped by two pence per litre, and diesel duty went down by three pence per litre. Most of Gordon Brown's tax cuts could be quickly wiped out by petrol price rises at the pumps. The fuel protesters who lead last year's campaign, which brought Britain to a virtual standstill, are making noises about going back on the road. Fuel is going to be very high on the agenda during the General Election.