PETROL prices in some parts of Dorset and the New Forest have hit 130.9p a litre, with diesel several pence more.

The AA said yesterday that fuel prices were rising at the highest rate for 10 years, with average costs rocketing from 122.14p in mid-December to a record high of 128.27p in mid-January. The previous biggest increase in the last decade was a 5.6p hike between May and June 2008.

Diesel has gone up from an average of 126.19p to 132.75p.

In Dorset, motorists are continuing to take a battering at the pumps.

In Bournemouth yesterday, the cheapest petrol could be found at Castle Lane Tesco, at 127.9p, with diesel at 131.9p. Meanwhile, among the most expensive was Texaco at Holdenhurst Road – 130.9p and 133.9p.

At the Jet in Shillingstone, north Dorset, prices were 130.9p and 135.9p, while Avenue Garage in Swanage was at 129.9p and 134.9p.

Owner Stephen Poultney said life was no easier for retailers.

“We make a margin of 3p a litre. The odd thing is, of course, when I came here 20 years ago and petrol was 49.9p, my margin was 3p,” he said.

“It’s very difficult. I’m currently having my pumps rewired as part of a 20-year replacement and that’s costing me a year’s profits. It’s heartbreaking, truthfully.”

Asda continues to offer the lowest prices at 125.9p for unleaded.

The AA said the 0.76p a litre increase in fuel duty at the beginning of January and the VAT rise – adding around 2.5p more to the pump price – had accounted for most of the latest increases. But oil prices have also been soaring and petrol is now 16p more than this time last year while diesel is almost 19p more.

On a 50-litre tank, that adds up to an extra £8.15 for petrol and £9.49 for diesel.

The AA said that many drivers were now opting to simply fill up less – sales were down 12.8 per cent between January and September last year compared to the same period in 2007.

President Edmund King said: “Unless the government can restore a more affordable level of fuel prices, by scrapping the fuel duty increase in April and bringing in a fuel price stabiliser, the falling tax return from constantly rising prices will reduce the income to the Treasury.”