US hurricane pushes up UK petrol prices

The knock-on effect of Hurricane Katrina is threatening to push up petrol and diesel prices in Britain.

The wholesale cost of fuel has leapt on both sides of the Atlantic as traders expect America to start snapping up supplies after oil refineries were put out of action.

Industry experts are now warning that motorists are almost certain to see the price of diesel hit £1 a litre while unleaded petrol is likely to rise to around 95p.