Fuel levy to raise cost of BA flights

British Airways is imposing a sharp increase in the surcharge it levies on passengers to cover the cost of jet fuel.

The move, triggered by record global oil prices, comes as motorists brace themselves for petrol costs to hit a new high. Experts predict an 87p litre will become the norm across the country within days.

BA is increasing its fuel surcharge on long-haul return trips to a massive ?48 - equivalent to 10 per cent or more on the cost of many flights. The move marks an increase of ?8 each way on the previous levy.

On short-haul flights, the price goes up from ?6 each way to ?8. BA's commercial director Martin George said: "The continuing rise in global oil prices to almost $60 a barrel means a further surcharge increase is regrettably unavoidable."

The airline's fuel bill for this financial year is likely to come in at ?1.6 billion - some ?450 million higher than a year ago.

Today's move, which comes into force on flights booked from Monday, is the fourth increase to fuel surcharges since the levy was first introduced in May last year at a rate of ?2.50 each way for both long- and short-haul routes.

Meanwhile, the Petrol Retailers Association says petrol prices could rise by 2p in the next few days, while the AA claims prices are already at record levels across the country. Diesel, now averaging 90.34p, is predicted to go through ?1 a litre by the end of the year.

In another blow to consumers, British Gas today said its household fuel bills would definitely increase later this year. Electricity and gas prices have already increased by nearly a fifth in the last 18 months. Crude oil prices on the global markets hit $60 a barrel overnight, returning to record highs, amid long-term worries about rising demand in China and India as well as massive recent consumption in the US - the world's biggest oil user.

Global appetite for oil is increasing despite price rises of 40 per cent since the start of the year. A return to economic growth in many parts of the world and an ever-growing number of people using cars are among the reasons.