Current prices are about 4-6 weeks behind the oil price so currently £1.20 petrol / £1.31 diesel is based on an oil price of $125 a barrel. It just hit a record high of $146 a barrel so expect a 10p hike in the near future.
A $2 rise equates a a 1p per litre rise according to the AA.
Will anybody be able to afford to get to work at these prices?
A lot of economists are predicting $200 a barrel by the end of the year (£1.60 a litre / £7.28 a gallon!).
I'm glad i don't commute anymore!