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The RAC Foundation has warned that some parts of the country could soon see petrol rise after it emerged that some petrol stations in the Orkney Isles are currently charging £1.50 a litre.
The prospect of prices rising to £1.75 a litre in outlying rural areas was raised by RAC Foundation spokesman Philip Gomm.

He said: "For every $2 rise in the barrel of oil you tend to see an extra 1p at the pumps. "Oil prices are presently $100 a barrel but that is still a long way off from the historic high of $147 a barrel before the recession in 2008.

"However, it doesn't need to go that high again for fuel prices to rise to £8 a barrel given the present price at the forecourts.

"Outlying areas like the Orkney Isles face higher transport costs, which is one of the reasons the Government is considering introducing a Fair Fuel Stabiliser for rural areas."

Government 'would have to take action'

However, Mr Gomm said drivers would not stand for £1.75 a pump in central and inner-city areas, and the Government would have to take action before it got that high.

He added: "It is technically possible for fuel prices to hit £8 a gallon in inner-city areas if OPEC (the Organisation of the Petroleum Exporting Countries) and other oil producing countries decide to turn down the taps.

"If the economic recovery continues and demand for oil increases again, OPEC could decide to limit the supply again as they did before the recession in 2008, and push prices back up towards the record high of $147 a barrel."