COMPANIES are being pushed to the absolute edge'' by rocketing oil prices, a business leader warned yesterday.
British Chambers of Commerce policy head Chris Hannant called for urgent action after crude oil reached a record of $135.09 a barrel on commodity markets.
Prices have since slipped back, but oil is still more than a third more expensive than at the start of the year and about double the cost of a year ago.
This year's relentless rises amid global supply fears have piled pressure on motorists, who yesterday faced the highest monthly rise in average diesel prices this century, as well as on business, many of which rely on oil for raw materials.
Mr Hannant joined growing calls for Chancellor Alistair Darling to scrap this autumn's proposed 2p rise on fuel duty.
He said: "Oil prices hitting new highs of $135 is pushing businesses to the absolute edge.
"Something needs to be urgently done or increasing numbers of companies will be left with no choice but to pass extra costs onto customers."
Mr Hannant's warning came as figures yesterday showed a record number of manufacturing firms were expecting to put prices up in the coming months because of oil price rises.
Forecourt data from the AA showed UK drivers were today paying an average of 113.98p per litre of unleaded petrol, up 18 per cent from a year ago.
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