Opec cut signals petrol price rise

DRIVERS are facing the prospect of a new rise in petrol prices, but it could be as small as 1p a litre. Any increase would be the result of today's decision by Opec, the cartel which controls much of the oil industry, to adopt measures aimed at pushing up prices.

A meeting of the 11 Opec countries in Cairo approved plans to cut back their combined production by 1.5m barrels a day, representing nearly 2% of the world's output.

However, the decision had been widely expected in the oil market and the price gained only 10 cents a barrel to $20.88 immediately after it was announced.

It is the fourth time this year that Opec has cut production in a bid to increase prices. Other oil-producers including Russia, Norway and Mexico have agreed to trim their output by 462,000 barrels a day as part of the campaign for higher prices.

Oil prices have crashed from a year ago, due mainly to fears of a global economic recession. Rising petrol prices are sure to trigger accusations of profiteering by the oil giants, who in their turn blame high taxation for pushing up costs.