Hurricane may hit pump prices

British motorists face paying more at the pumps due to damage caused by Hurricane Katrina.

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British motorists face paying more at the pumps due to damage caused by Hurricane Katrina.

Oil and gas prices have hit record highs after the hurricane swept through parts of America at the weekend.

Production of around 1.8 million barrels of oil a day has stopped after Katrina wreaked havoc across the US. Experts say it could take days before the damage can be fully assessed.

After the extensive destruction of oilrigs and refineries in the Gulf of Mexico, and the emergency evacuation of workers, there is a shortage of crude oil.

This has pushed up the price of crude oil, which peaked at a record high of $70.80 a barrel yesterday. Gas prices have also risen by 20%. The knock-on effect is expected to cause a worldwide increase in fuel prices.

Ray Holloway of the Petrol Retailers’ Association, said: ‘Traditionally in the UK we should now be facing a downturn in the price of fuel as we go into the autumn. However, as a result of the hurricane in America, we are more likely to see a slight increase or, at the very least, the high prices we are currently experiencing will be sustained for a longer period.’