Oh no... oil prices up again
* Biggest one-day hike in oil * Follows supermarkets dropping prices * Cost of fuel could rise...
Just when we thought fuel prices were starting to fall, the price of oil has had its biggest ever one-day price gain.
On Tuesday, supermarket chain Morrisons was the latest retailer to announce it was dropping the price of its fuel, cutting the cost of petrol and diesel by 3p a litre.
However, on the same day the price of a barrel of crude oil jumped $16 to $120, which has raised fears of a petrol price hike.
The rise in the price of oil was attributed to financial instability in the United States and Hurricanes Gustav and Ike affecting drilling the Gulf of Mexico.
A barrel of oil hit a high of $147 in July but petrol retailers have been accused of not passing on the fall in the cost of fuel to consumers quickly enough.
Ray Holloway, director of the petrol retailers association, said this latest price rise would not filter through to pump prices for some time yet.
'It will be a few days before we know if there is going to be a knock-on effect at the pumps.'
