Opec tries to push up petrol price

Drivers are facing the prospect of a new rise in petrol prices. But any rise is expected to be small, possibly as little as 1p a litre.

The increase will come if Opec, the cartel which controls the oil industry, agrees to measures aimed at pushing up prices.

A meeting of the 11 Opec countries in Cairo is expected to approve plans to cut back their combined production by 1.5 million barrels a day, representing nearly two per cent of the world's total output.

Oil prices were trading higher in London this morning in anticipation of the move. It will be the fourth time this year that Opec has cut production in a bid to increase oil prices.

Oil-producing countries outside Opec, such as 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 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. However, the companies blame high levels of tax for pushing up costs.