Pipeline leak sends oil prices soaring as petrol hits £6 a gallon

Petrol prices continue to rise

Petrol prices continue to rise

The price of petrol could increase to £6 a gallon due to a calamity at a major American pipeline pushing oil up.

The pipeline leak occurred at the Trans-Alaska system, carrying an estimated 15 per cent of all U.S. oil production, with forecourt prices rapidly increasing since the beginning of the year.

Fuel cost has also increased due to the VAT now at 20 per cent. A website which measures the average price of petrol in the UK, petrolprices.com, recorded unleaded petrol costs at an average of 127,8p per litre and 132.05p for diesel.

Some forecourts are charging 140p per litre for unleaded and 400 forecourts are already charging 130p per litre.

If the average price of unleaded petrol reaches 132p per litre then it will be the same as £6 per gallon.

The mishap in Alaska has led to the shutdown of the pipeline by BP and its partners, pushing the price of oil up by 2.3 per cent to $95.46 a barrel in London, while speculators are trying to push prices over the $100 mark.

The AA says that every $2 added to the price of a barrel equates to 1p at the pump. An AA spokesman said, ‘Most people cannot afford these higher petrol prices, but unfortunately a combination of ever increasing fuel tax and speculators gambling on the price of oil is leading prices inexorably higher.’

As prices continue to increase the hope of a return to the fuel blockades and protests becomes more likely.

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