Petrol prices have hit record highs at the pumps, signalling disaster for every section of the economy.

A litre of unleaded petrol has risen to 85.6p, breaking the previous record of 85.3p in June 2000, which spurred massive nationwide protects and fuel blockades in September that year.

In some parts of Sussex, garages were charging more than 90p a litre today.

Business leaders warned the increase would be bad news not just for the county's beleaguered motorists but for customers of utilities, firms and supermarkets.

Retailers have blamed the volatile nature of the world's oil markets and the AA Motoring Trust said prices could go up by a further 5p, paving the way for the possibility for the first time of the £1 litre of petrol.

Mark Froud, chief executive of Sussex Enterprise, said: "Individuals are affected by this as much as businesses. The problem for businesses is they can't make the decision not to go somewhere.

"Prices at more than 90p a litre will certainly feed into customer prices and so everyone will be affected, not just drivers. We are very concerned about the long-term effects on the economy.

"This will put prices up everywhere, on things like energy bills. Electricity companies buy their oil about six months in advance so you will only notice the difference in bills much later.

"It will affect economic growth, not just here but right across the world. If the prices stay at this level for an extended period, like a few months, it will have a serious effect."

In September 2000 panic buying caused petrol pumps to dry up across Sussex.

Stocks dwindled as drivers filled up amid fears a blockade of fuel depots would cause shortages across Britain. Farmers, hauliers and taxi drivers mounted the protest to force the Government to cut petrol taxes which were the highest in Europe.

Ray Holloway, director of the Petrol Retailers' Association, said: "The price of petrol now is just above where it was in September 2000. This is not a surprise to me as we pay more for our fuel than any other developed country. It's because most of the petrol price, more than 70 per cent, goes to the Government in tax."

At the Q8 garage in Arundel Road, Worthing, motorists were being charged 90.9p a litre for unleaded petrol and 94.9p for diesel.

Motorist Andy Phillips, 37, a carpenter, of Ferring, near Worthing, said: "I feel sorry for the truck drivers and others who use diesel because those prices are ridiculous. I can't believe the prices have gone up again just before the election, maybe there should be some strike action to let the Government know what people think."

The Tates Garage in Old Shoreham Road, Brighton, had just put 1p on the litre and was now charging 88.9p for unleaded petrol and 91.9p for diesel.

The Esso garage in Malling Street, Lewes, was charging 86.9p for unleaded and 90.9p for diesel. The Shell garage in Preston Road, Brighton, was charging 83.9p and 88.9p, after a 2p increase. Esso has five garages in the Brighton area and was selling unleaded fuel at 84.9 per litre.

In January Asda took 3p off the cost of a litre of petrol, prompting other supermarkets to review their prices. But three months later prices have risen again.

Luke Bosdet, spokesman for the AA Motoring Trust, said: "Motorists have it in their power to reduce their costs. For example, if you normally do about 80mph on a motorway, by reducing your speed to the speed limit of 70mph, you are saving about 40p every ten miles. So in a 50-mile journey you are saving at least a litre.

"Parents picking their kids up from school should not leave the engine running, there are all sorts of common sense things you can do."

Jane Morgan, partner and transport manager of Transram Europe haulage company, based in Lancing, said: "We have lost custom as we no longer ago abroad. We can't compete with foreign companies as we can't match their prices. This also means we no longer get the chance to stock up on cheaper petrol in France."

Furniture designer Toby Bishop, 25, commutes between Brighton and Dorset and spends more than £60 a week on petrol.

Mr Bishop, of Belvedere Terrace, Brighton, said: "People are trapped because they have got to use petrol to go about their lives on a daily basis. The public transport system is insufficient so if you want to guarantee you will get somewhere on time you have to drive."

April 12, 2005