THE price of petrol may be at a record high, but the region still has the cheapest fuel in the country, figures reveal.

Figures from the AA show the average price for a litre of unleaded in Yorkshire and Humberside is 127.3p, with diesel at 131.9p.

Both prices are the lowest in the UK.

The North-East has the second cheapest fuel at 127.4p for petrol and 132.4p for diesel.

A survey by The Northern Echo found that prices at pumps in the North-East and North Yorkshire vary by as much as 9p a litre.

The cheapest fuel can usually be found at supermarkets, while motorway service stations and rural garages often have the most expensive.

Hartlepool has some of the cheapest fuel in the region, at 124.9p a litre for unleaded and 129.9p for diesel.

David Hutchinson, who runs Mickleton Service Station, near Barnard Castle, blamed the high prices on the lack of competition in the oil market, as well as increases in duty and VAT.

Mr Hutchinson, who is selling unleaded petrol for 133.9p a litre and diesel for 137.9p, believes many small independent filling stations will struggle to survive if prices continue to rise.

He said: “I’ve been open since 8am and I’ve had one cash sale of £10. I would love to buy fuel for the price supermarkets are selling it for, but I’m paying about 4p a litre more.”

Richmondshire district councillor Yvonne Peacock, who represents the Addlebrough ward in Wensleydale, said it was an issue concerning everyone.

“Everybody is so reliant on the car because public transport is not good enough in the Dales. Whether you’re a farmer, involved in tourism or are just a normal resident, it has a big impact.

“Everywhere you go people are talking about the fuel price increases.”

Across the UK, the national average is 128.3p for unleaded and 132.8p for diesel.

The average price of diesel is within a penny of the record set in July 2008, while petrol is at an all-time high.

The most expensive fuel is on sale in Wales and Northern Ireland.

The UK has the fifth highest unleaded price in Europe and the second highest diesel price.