RECENT surges in the price of petrol mean that the average annual cost of motoring has doubled in the past 10 years, latest data shows.

The average cost is now £2,053 per year with petrol accounting for more than £1,100 of the total, said Sainsbury's Bank.

car insurance - averaging nearly £460 a year - is the next biggest expense followed by vehicle servicing at £250.

Sainsbury's car insurance manager Joanne Mallon said: "It is becoming increasingly expensive to drive, but taking a few simple steps such as shopping around for car insurance could save you hundreds of pounds.

"However, it is not only the costs associated with actually running a car but also the price paid for new cars that motorists need to address.

"Between February and July 2005, more than 370,000 people said that they planned to buy a brand new car but would not haggle over the price.

"Given that you can save over £1,500 on the price of a brand new car by haggling, these people could have collectively lost out on more than £550 million."

l Petrol prices are under pressure again as oil prices stayed close to record highs yesterday.

Traders were awaiting further reports on hurricane damage to key production and refining sites in the Gulf of Mexico.

Crude oil for October delivery stood at $68.13 a barrel after peaking at $70 ahead of Hurricane Katrina reaching land on Monday.

Petrol Retailers Association spokesman Ray Holloway said the squeeze on US refinery capacity could have a knock-on effect on the UK.

"In a nervous oil world the hurricane is inevitably going to have an impact on the barrel price.

"An awful lot of speculative money is going into the oil price, several dollars are just there for investment purposes."

First published: August 31