Fury at petrol profits

BP is facing a backlash from motorists today as it unveils record profits of £6.7 billion.

The profits for 2003 - an astonishing 42 per cent increase - are among the biggest ever made by a British company. They come as drivers face sharply rising petrol prices on the forecourts.

BP said today that one of the biggest increases in profits came from selling petrol at its garages. Prices have recently jumped by 10 pence a gallon to their highest level for eight months.

In the 2003 results statement to the Stock Exchange, BP said: "The results for the fourth quarter and the year reflect ... higher marketing margins, particularly retail margins in the USA and Europe."

BP's figures come days after profits of almost £6.4 billion from its rival Shell There was a quick reaction from motoring organisations, who said that BP was swift to increase forecourt prices when the global oil price was high, but rarely lowered them again when the oil market was weaker.

Edmund King of the RAC Foundation said: "When oil prices do go its seems that pump prices always go up almost immediately." Rebecca Rees of the AA, said: "The price of oil is volatile and that makes a difference to petrol prices - but every time the price of a gallon goes up, the real winner is the Government, which takes £7.50 out of every £10, in taxation."

Ms Rees added: "Motorists should definitely shop around to make sure they take advantage of the best deals and do not pay more than they really need to; you can see differences of four pence a litre within a small area."

Unleaded petrol now costs an average of 76.79p a litre (£3.49 a gallon) with diesel is also up to an eight-month high of 78.34p, according to a survey by fuel management company Arval PHH.

The rises put prices back to the level they were at during the Iraq conflict in May 2003.

It means motorists are paying around two pence a litre (10 pence a gallon) more for unleaded since July, when forecourt prices fell and the "clean" fuel cost 74.6p per litre (£3.39 a gallon). PHH said the increases followed a 'long period of stability' in fuel prices.

From August to December last year prices varied by less than a penny per litre from week to week, but the recent rise in oil prices was starting to be felt on the forecourts, the firm's analysts said.

BP's chief executive Lord Browne said: "Our results in 2003 have set a new record. We have delivered a good result."