SUPERMARKET fuel retailer Safeway believes higher fuel prices are inevitable after claiming it has been selling petrol and diesel at a loss. The company has increased its filling station prices by 5p per litre/22.7p a gallon, resulting in a new high of 84.9p for a litre of unleaded, 85.9p for a litre of diesel and 88.9 for a litre of LRP.

A spokeswoman said: 'Nobody is making any money on fuel at the current prices. Price increases were in the pipeline before the fuel shortage occurred, but we are all in a difficult situation.'

A spokeswoman for BP said: 'We made a commitment when the fuel crisis was at its height that we did not believe it was the right time to implement price increases during that difficult period.

'That is still the case, but if increases in the international price of fuel are sustained then it will inevitably be reflected at the pumps.'

A Shell spokeswoman said: 'We are monitoring the situation because the continuing high oil prices are cause for concern, but we have not changed our prices.'