Petrol prices reach £5 a gallon

The average motorist could soon be paying more than £2,600 a year to fill up their car, swallowing almost 15 per cent of the average take-home pay, a survey predicted.

Figures compiled by the AA showed that on Tuesday the national average price for a litre of unleaded petrol rose to 110.2p, or £5.01 a gallon. Diesel now costs 120.51p, or £5.48 a gallon.

Edmund King, the president of the AA, described the record high as "the latest milestone along a miserable road of increasing fuel prices this year".

Soaring costs of crude oil, caused by increased demand from developing countries such as China and India, have pushed up petrol prices by almost 20p a litre since this time last year.

Meanwhile, oil companies have been accused of ripping off motorists after BP and Shell announced record profits totalling more than £7 billion for the first three months of this year.

But a comprehensive study by uSwitch.com, the comparison website, suggests much worse is to come. Many analysts have suggested that by next year petrol could cost 150p per litre, meaning the average car would cost £84 to fill, compared with £49.22 last year.

For a motorist driving 12,000 miles a year, that equates to £2,636 in annual fuel bills – £706 more than this year.

Even smaller cars, such as Ford Fiestas, would cost £1,792 a year to fill up, while a luxury saloon such as a Mercedes C-Class would cost £4,190.

The average net salary in 2009 is predicted to be £19,167, meaning the average car will guzzle 14 per cent of take-home pay in fuel bills alone.

Ann Robinson, of uSwitch.com, said: "Unfortunately the outlook for drivers is bleak. This latest blow could be enough to force some drivers off the road altogether. As a direct result of these price hikes, it would be no surprise to see more motorists leaving their car at home and using other methods of transport.

"However, drivers who are reliant on their cars for business or live in remote areas will be hardest hit - for them, leaving the car at home is not an option."

Gordon Brown is under increasing pressure to scrap a 2p increase in fuel duty planned for October or even to cut fuel duty after hauliers warned that hundreds of companies would go out of business if the price rises continued.