UK petrol prices climbing

UK petrol and diesel prices are still increasing in the aftermath of Hurricane Katrina. According to industry body Catalist, the average price of petrol is now 95.1 pence a litre, compared with 94.6p on Monday.

Average diesel prices have increased to 97.6p, from 97.3p on Monday, and super-unleaded fuel exceeded £1 for the first time at 100.36p.

Prices are still increasing despite a fall in oil prices. US light crude fell 46 cents to $65.50 a barrel on Wednesday, following a fall of $1.61 on Tuesday. London Brent crude fell 30 cents to $64.37 a barrel.

Prices have now fallen by over $5.00, or 7%, from $70.85 on Tuesday - a record high. They are now almost back to levels seen before Hurricane Katrina hit the Gulf of Mexico.

Nine refineries closed down by the hurricane have resumed normal operations, and two others are expected to restart operations later this week.

Analysts expect no major drop in oil prices in the near future, as eastern Florida is again being threatened by a tropical storm. The Gulf of Mexico hurricane season lasts until the end of November.