Pump action

Fears of imminent terror attacks in Saudi Arabia, the world's largest producer of crude, sparked a surge in oil prices, which rose to their highest level for more than 22 years.

Petrol price watchdog Catalist revealed that the average cost of a litre of unleaded in the UK has increased to 90.2p, and just under 94p for diesel.

So far the spiralling cost of oil does not appear to have impacted on Bournemouth, where the price of a litre of unleaded at most petrol retailers has remained between 86.9p and 89.9p.

But spokesman for the AA Motoring Trust, Luke Bosdet, warned residents to brace themselves for a price hike, adding it was almost inevitable that the cost of petrol would slowly continue to rise.

"I think it will take a while before it starts to cost as much as £1," he said. "It's been hanging around between 89p and 90p for a long while, but it has been creeping up inch by inch."

Mr Bosdet explained that he believed the urban nature of the conurbation has so far helped keep prices down because there are so many petrol stations competing for business.

"Supermarkets really help create a strong competitive environment for petrol prices," Mr Bosdet added. "If other petrol stations don't keep up with supermarkets selling fuel then they will lose customers.

"It normally takes up to six weeks for a crude oil price rise to work its way through to the forecourt."

He also claimed that the close proximity of the Esso oil refinery at Fawley, near Southampton, the largest of its kind in the UK, would help keep transport costs down and could prevent the cost of a litre of petrol spiralling much beyond 90p.

But Mr Bosdet revealed that in some rural areas petrol retailers faced with rising transport costs may have no choice but to increase the cost of a litre of unleaded petrol to as much as £1.

Transport businesses based in Bournemouth, including hauliers and taxi companies, admitted they were concerned at the surge in prices.

Chairman of Bournemouth Taxi Association Ashley Miller said he felt petrol prices were getting "out of hand," adding it was getting harder and harder to make a living out of driving cabs.

But he promised customers there were no immediate plans to increase the cost of fares in Bournemouth.

Ricky Young, transport manager at Dave Forrest Transport, a haulier company based at Bournemouth Airport, with a fleet of five lorries, said: "We have always run our business on pence per mile, but if prices continue to rise we will have to take another look at what we charge.

"The problem we find is that the price hike gets passed onto the customer. That's the only way you can carry on making a living."

According to the AA UK motorists are now spending an extra £7.5 million a day on fuel compared with January, and pump prices are unlikely to fall.

In 1999 a barrel of crude cost $10, rising to $40 last year and now standing well above $60.

Factors suspected of contributing to the increasing cost include the succession of terrorist strikes from the attack on the World Trade Center to the bombings in London, which have created uncertainty and undermined confidence in the supply of oil.

PriceWatch

Prices for a litre of unleaded petrol at supermarkets and petrol stations across the conurbation.

Sainsburys, in Ringwood Road, Ferndown, 87.9p

Sainsburys, in Alder park, Parkstone, 89.9p

Texaco, in Holdenhurst Road, Bournemouth, 89.9p

Tesco, in Pennys Walk, Ferndown, 87.9

Tesco, in Riverside Avenue, Bournemouth, 90.9

Tesco, in waterloo Road, Poole, 87.9

Shell, in Kinson Road, Bournemouth, 87.1p

Shell, in Barrack Road, Christchurch, 88.9p

FuelSaver

You can go to the AA's website (www.theaa.com) to access fuel price reports for Britain and abroad, plus running cost figures for your size of car.

Slow down. If you normally drive at 80mph on the motorway, cutting your speed to 70mph can save you an incredible 40p every ten miles.

Drive in higher gears whenever possible. They use less fuel.

Plan for your trip. Make sure you avoid rush hour traffic and work out the most direct route.

Some supermarket chains offer coupons that give discounts on petrol depending on the amount of money customers spend on their shop.

Minimise the use of air-conditioning, which can increase fuel consumption by up to 10 per cent.