Petrol prices have hit a record high, according to new figures from the AA showing that the average price of a litre of unleaded fuel has reached 137.44p.

The motoring group said recent increases had taken prices past the previous record set in May last year. It also confirmed that diesel had set a separate price record, reaching 144.60p a litre yesterday.

The news came on the same day as crude oil prices approached a four-year peak of $128 a barrel following reports of potential supply disruptions from Saudi Arabia.
Iranian reports yesterday of a pipeline fire in Saudi Arabia prompted a spike in the price, before denials from Saudi officials calmed the market.

Oil prices have remained well above $100 a barrel over the past month as a result of fears about the impact of tough new sanctions on Iran and optimism that the US economy is starting to recover.

Edmund King, head of the AA, said motorists could be facing “week-on-week increases” as prices continue to face upward pressure from high oil prices and the pound’s weakness against the dollar.

The AA is calling on chancellor George Osborne to use this month’s budget to delay plans to increase fuel duty by 3p per litre from August.

However, green groups have argued that fuel duty cuts will have a negligible effect and the government should instead step up investment in alternative transport options.

The high prices are likely to continue to drive demand for more fuel-efficient vehicles, including new electric and plug-in hybrid cars.

Toyota reported this week that high pump prices in the US meant it had exceeded sales targets for its popular Prius hybrid. The company said that overall US sales were up 12 per cent last month, while Prius sales grew 52 per cent to 20,589 – the highest level in four years.

Nissan, Hyundai and Kia Motors, all of which specialise in relatively small and efficient vehicles, all reported February sales that exceeded expectations, according to news agency Bloomberg.

In another boost for green car manufacturers, China – the world’s fastest expanding auto market – this week announced tough new rules for addressing urban air pollution.

A government statement confirmed that the country’s state council had agreed new national air quality rules that will impose tough new standards on mega cities such as Beijing and Shanghai, while also requiring more than 100 smaller cities to adopt new standards from next year.