But what does this mean for the long suffering motorist, and is there any light at the end of the tunnel? Stuart Milne answers some of your fuel price concerns.

Why are prices rising?
Many factors have combined to create the massive price hikes that we're currently experiencing.

Hurricane Katrina interrupted fuel production in America back in the summer, but the effects have been compounded by political instability in the Middle East and Nigeria and huge demand in China and India.

Petrol retailers are hoping the rise will be temporary and prices will settle later in the year - but we think it's unlikely.

How much does petrol really cost?
The shocking truth is petrol only costs around 26 per cent of what we actually pay.

And the retailers don't see much of the 95 pence per litre either - they receive just 14.8 per cent of the price on the pump.

The government are the main beneficiaries of the high cost of fuel. Almost 60 per cent of the cost goes straight into Gordon Brown's coffers - 52.2 per cent is duty, and 7.5 per cent is VAT.

Brits pay more for their fuel than almost any other European country; only Denmark, Holland and Norway pay more.

Should you consider alternative fuels?
We'll have to ditch petrol and diesel one way or another. Exhaust emissions are widely believed to contribute to global warming and oil is a commodity that is fast running out. So what are the eco-friendly options?

Hybrids still use petrol engines (although diesel hybrids will be here soon), so are only a short-term fix. They may emit less pollutants into the atmosphere, but are matched in the consumption stakes by cheaper diesel-engined cars.

The argument for bio-ethanol-powered cars is growing by the day. The UK's first ethanol filling stations are now open and both Saab and Ford have bio-powered cars on sale. Critics are worried the growth of crops best suited to producing ethanol will lead of wholesale deforestation; however experts say that localised production should provide enough to power most of the UK's cars.

Electric cars aren't suitable for long journeys. Batteries are heavy, expensive and don't last long between charges. However, the technology is advancing, so more powerful and longer-lasting power packs are on the horizon.

Hydrogen fuel cell vehicles are likely to be the best long term bet. Fuel cells are like a battery, but fuse hydrogen and oxygen together to create electricity, and water as a waste product. Hydrogen occurs naturally, and the waste water is - theoretically - pure enough to drink. Unfortunately, fuel cell technology has a long way to go, not least because it takes as much energy to fuse hydrogen and oxygen as it would to power a motor conventionally.

Can I get fuel cheaper?
The days when you could get petrol for 30 pence per gallon are long gone. According to petrolprices.com, the average price of petrol has hit 95 pence per litre, while diesel has rocketed to over £1.

But there are ways of saving at the pumps. Petrolprices.com lists fuel prices at more than 10,000 petrol stations across the country, and has a search tool so you can find the cheapest fuel locally.

Another organisation has gone one step further, and is actively recruiting members looking to save money on fuel. Pipeline Card's founder, Ben Scammell discovered that fleet fuel card firms such as Allstar receive discounts on fuel for its members. Scammell thought that if discounts were on offer for fleets, why should private motorists miss out.

It's free to sign up to Pipeline Card, which has agreed the idea in principle with one major retailer. However, it needs substantially more than the current 340,000 members to meet their criteria. Pipeline Card definitely looks like a good bet for the future.

How can I get more miles to the gallon?
Modern cars are more efficient than ever, but it is all too easy to burn more fuel than you need. National service centre, Hi-Q has come up with these top tips:

• Ensure tyres are inflated correctly - under inflated tyres give more road friction and increase fuel consumption. Wheels should be correctly aligned and balanced
• Regular maintenance will keep the engine at the peak of efficiency
• Generally reduce speeds - driving at 50mph can use 25 per cent less fuel than at 70mph; a reduction from 80 to 70mph can save 40p every 10 miles and driving at 90 mph can use 60 per cent more fuel than at 70 mph
• Switch off the engine whenever it is safe to do so - idling engines use fuel and waste money
• Switch off the air-conditioning - it can add up to 14 per cent to your fuel consumption
• Drive smoothly - rapid acceleration and heavy braking increases the risk of accidents and uses more fuel
• Extra weight increases the fuel consumption - remove roof racks when not being used and empty your boot of all non-essentials