GARAGES across Hampshire were yesterday busy setting record fuel prices as the full effect of a hike in world oil prices began to take hold.

Business leaders are now warning it will not just hit motorists in the pocket but jobs could be at stake.

Prices are now up almost 15p in less than one year.

Woolston's Shell garage in Portsmouth Road, Southampton (shown right) was the priciest at 104.9p a litre. Diesel there cost 107.9p. Shell said some of its garages were leased and free to set their own prices.

However the company's forecourt in Stubbington was believed to be the cheapest in the county yesterday, selling at 97.9p a litre.

Peter Morgan, Hampshire spokesman for the Association of British Drivers, a lobbying outfit, said: "We are calling for no further increase in duty and for the Chancellor to reconsider his imposition of duty a few weeks ago."

"As prices go up, tax take goes up and the Chancellor gets a bonus."

Duty on petrol and diesel was increased by 2p a litre from the start of last month. The Government is committed to a further 2p fuel duty rise next April and another 2p increase in April 2009.

Figures from Hampshire based PetrolPrices.com, show that both unleaded and diesel are at record highs.

Brendan McLoughlin, managing director of the website, said: "It looks like speculators betting oil prices will rise are creating false demand and driving prices at the pumps higher. Hopefully, we will see their bets go wrong and the price of oil fall back to bring us under the £1 mark again."