FUEL prices have rocketed to an all-time high with Plymouth first to break the £3 gallon barrier.

According to the latest PHH AllStar monthly fuel report, prices in September rose by an average 2p a litre (almost 10p a gallon) to give an average price for unleaded petrol of 58.15p per litre (264.34p per gallon). The average price for diesel was 58.57p per litre (266.25p per gallon), the average price for four star was 62.85p a litre (285.71p a gallon) and for super unleaded it was 63.55p a litre (288.89p a gallon).

Plymouth achieved the dubious distinction of selling the country's most expensive petrol with super unleaded selling for 66.30 pence per litre (301.39 pence per gallon).

Keith Greenhead, PHH's divisional manager fuel said the major oil companies had fought the price war to improve their market share by streamlining the industry. He added: 'It should not really surprise anyone that oil companies are now beginning to charge the prices necessary to be profitable. Prices have to rise to reach a realistic rate - and I am afraid to say that with the Budget on the horizon the cost of fuel can move only one way - and that is up.'