Petrol 'to hit £5 a gallon' as motorists face record fuel bills at the pumps this Christmas

Motorists face fuel bills rising to record levels as they fill up their cars in the run up to Christmas, a report warns.

The RAC said today petrol prices are expected to reach 110p per litre by the middle of next month – the equivalent of £5 a gallon.

The latest price rises - blamed on worldwide oil costs and the falling value of the pound - will come into force just as millions of families plan Christmas visits by car to family and friends.

The price hike means an increase of more than 26 per cent on last year when unleaded fuel cost 87p a litre.