Forecourt price displays could be showing figures as high as £1.20 per litre in the next few weeks.  A study conducted by the AA showed that this is an extremely likely occurrence.  Such an increase could make filling up your van significantly more expensive in the near future.

You may even have encountered prices over that mark already, since prices peak in some specific areas around the UK.

Edmund King, president of the AA – who conducted the research – warned that “The UK is barely out of recession, yet petrol prices threaten to rise to record prices seen during the boom of 2008 – shortly before the collapse into recession.”

He also said that if drivers were “unable to cope with record prices then, they are even less likely now.”

Petrol prices currently stand at a national average of 117.7p per litre for unleaded, and 118.2p per litre for diesel, according to the price watchdog petrolprices.com.

Calls have been made for Chancellor Alistair Darling to act on these increases by delaying the plans for a 3p increase in petrol duty, scheduled to take place from April 1^st this year.

The previous overall record for UK average petrol prices was recorded in July 2008 when it hit 119.7p as a result of extremely high crude-oil prices.

Some regions will have already experiences particularly high prices, since variations in prices are always found nationwide.  Central London fuelling stations generally charge higher prices for petrol.  This, according to the AA, is a result of there being more limited supply.

Other particularly expensive refuels are to be found in the Northern-most parts of the UK.  Scottish highlands and island petrol stations suffer from much higher delivery costs than the rest of the country, and these prices have to be passed on to the consumer.

Regional differences in price can make it extremely worthwhile to plan when and where you are refilling your van, allowing you to get the best possible price per litre.

The sharp price increases we are seeing are a result of rises in the price of wholesale gasoline.  These rises have been occurring since the end of January.

The highest percentage of petrol cost is comprised of tax, with the price of the product itself coming in second.  According to petrolprices.com, in a litre of diesel costing 109.9p, duty accounts for 56.19p, the product itself costing 30.95p, with VAT, delivery and retailer revenues comprising the final 22.76p.

Many commentators have been questioning the reasons for increases in the cost of petrol, and trying to uncover the causes.  Labour MP Lindsay Hoyle recently told the Daily Telegraph that “Crude oil has gone up this year, but nothing like the rise in petrol prices. Motorists are being legally mugged at the forecourt by petrol companies.”

Hoyle went on to call the current high price of petrol a “complete disgrace”.

Some of the increase in crude oil prices can be attributed to the weakening of the pound against the dollar (the currency in which crude oil is primarily traded).  Another possible cause is a lack of European refining capacity.

One thing is for sure, though; you are certainly going to have to shell out more at the pumps for the foreseeable future. Remember to save money on your Commercial Vehicle Insurance.