STORM HARVEY TO PUT 4P ON PETROL

RAC: Prices to rise in days

DRIVERS are facing a 4p-a-litre hike in petrol prices due to Tropical Storm Harvey, experts say.

The RAC has warned the cost of unleaded will hit a twoand-a-half year high of 121p a litre in the coming week.

Figures showed unleaded will overtake diesel for the first time in more than a year, as diesel holds steady at 118.5p.

It follows a surge in demand in the United States following the closure of large refineries on its Gulf Coast due to the devastating storm. RAC’S Pete Williams said Harvey had hit a quarter of America’s refining system, slashing output by 4.4 million barrels a day.

He said: “The price of a barrel of crude oil has also increased to $52.79 [£40.69] following the catastrophic floods in Houston, Texas.

“Americans are wedded to their petrol engines and... they are now having to buy more unleaded from overseas, which is reducing the availability of unleaded for the rest of the world.”

And he warned: “The ongoing crisis in Texas could have a prolonged impact on demand and, in turn, the wholesale price.

“So we may see further price increases on the UK forecourt.” The AA said unleaded had already jumped 2p a litre this week to 117.29p, with diesel up 1p to 118.14p, meaning motorists will be paying up to 6p a litre more week-on-week.

AA’S Luke Bosdet said: “Hurricane Katrina, which hit around the August Bank Holiday of 2005, added 5p to a litre of petrol in a matter of days. “I suspect we will see something similar with Harvey.”