PETROL prices were on the verge of breaking the £1 barrier today as motorists were warned to expect further price rises this week.

Car owners have borne the brunt of Monday's 2p rise on fuel duty and the AA predicted prices would increase further by Friday as supermarkets used up their remaining stock bought before the rise.

Private motorists and businesses, who have seen the average price of unleaded petrol rise 7p in the past 12 months, spoke of their dismay at the prospect of more increases.

Some predicted rises in taxi fares and a tough time for small businesses and families who have been forced to swallow the increase.

Yesterday, motorists in Yarnton teetered on the verge of a £1 litre of unleaded fuel as Blenheim Service Station in Woodstock Road raised prices to 99.9p.

Diesel prices peaked at 102p at the BP garage in Thame Road, Stadhampton, while an Asda self-service petrol station in London Road, Wheatley, claimed the cheapest prices for unleaded petrol and diesel at 93.9p and 95.9p respectively.

Brendan McLoughlin, co-founder of website www.petrolprices.com, said: "I would be very surprised if the price doesn't go up to £1.

"The future of the price of petrol is pretty bleak."

Marina Smy, a mother of nine-year-old quads, from Benmead Road, Kidlington, said the price increase would bump up the cost of driving her daughter Rosie to Brownies or her three sons, Jamie, Jack and William, to play in away football fixtures.

She said: "I am not happy. It is going to affect our cost of living like everyone else.

"We are just lucky that we are earning enough to cover the extra."

Faz Chaudhary, owner of Botley Taxis, predicted his company's fares could rise by five per cent because of the increased cost of fuel.

He said: "Obviously we are not very happy. It will cut into profits and in time, this will have to be reflected in fare prices.

"It is definitely worrying. It is going to put some small businesses in danger of closing."

Terry Reynolds, managing director of Bicester haulage firm DA Clayton, said: "It is not very good for our industry. I am worried, to be honest.

"I do not think we are going to be able to pass any of these costs on to our customers. I do not think they are going to take them."

Paul Watters, head of public affairs for the AA, said the average price of fuel rose by a penny yesterday.

He added: "Because supermarkets are holding large stocks, we anticipate there will be a jump in prices by the end of the week.

"The stock they have now was bought at an old duty rate and we anticipate this will last until Friday and then prices will be put up."

Source: Witney Gazette