New UK cost of living threat as oil rises to highest price in seven years

With petrol and diesel already close to record highs, driving costs look likely to increase again

Britain’s hard-pressed households face a fresh threat to their living standards after fears of Middle East supply disruption sent the price of oil to its highest level in seven years.

With the cost of petrol and diesel already close to their highest-ever level in the UK, the cost of driving is set to rise again after a jump in oil prices to almost $88 (£65) a barrel.