Motorists faced renewed misery today as petrol prices hit a new record high of £1.22 a litre. After a week of traffic chaos in the Big Freeze, the cost of filling up at the pumps has soared - adding almost £25 to the monthly bill of a two-car family. It comes as families across Britain struggle with higher food and energy bills. Escalating oil and wholesale fuel prices - and alleged profiteering by oil giants and retailers - are blamed for the increases in the price of petrol. Prices are likely to rise even higher in the New Year when the VAT rate goes up another 2.5 per cent - to 20 per cent. The AA, which has accused oil giants and fuel retailers of profiteering, has predicted highs of up to 124p in the coming weeks. Today the price of a litre of unleaded petrol hit 121.76p. At the beginning of 2010 petrol averaged 109.88p a litre. It means drivers are paying £5.84 to fill their tanks. And the extra monthly cost of petrol for a two-car family is now £24.80. The record price for diesel is 133.25p set on 17 July 2008. AA President Edmund King said: 'In the past week, we have seen the average price of petrol shoot up 1.7p a litre across the UK and diesel rise 1.61p. 'It comes at a particularly bad time for drivers who have struggled with appalling winter weather and often seen their fuel drain away while stuck in snow-bound traffic jams. 'Although the wholesale price of petrol has risen sharply in the past fortnight, there is a growing feeling of helplessness among drivers with winter travel disruption and ever-rising fuel costs. 'If current prices persist, the new year increase in fuel duty and VAT will push petrol prices up to 124p a litre.' He added: 'Our only hope is that either oil and fuel markets settle back down or the pound strengthens against the dollar. Until then, it is an even more uncomfortable ride for families trying to keep their cars on the road.' Adrian Tink, RAC Motoring Strategist, added: 'It's unbelievable to think that, compared to this time last year, petrol is 13p per per litre more expensive. That's over £7 more every time you fill up an average tank.' Through the roof: Petrol pump prices are set to steadily increase in the next month He said: 'You can't get away from the fact that we have seen 5 rises in fuel duty in the past two years - and we're due another one in January plus a VAT rise. 'Who knows what the price will be come January 5th, 2011 - an average of 125p per litre is very feasible.' Mr Tink said familes were hit hard: 'If the Government is serious about ending the war on motorists then for the large majority of drivers that starts at the petrol pumps. 'January's rise must be cancelled, and the overall issue of the price of petrol in this country needs looking at urgently.' On the New York Mercantile Exchange crude rose 42 cents, or 0.48 percent, to $88.70 a barrel. Brian Madderson, chairman of the petrol retailers' trade association RMI Petrol 'strongly refuted' charges of profiteering and blamed the rising wholesale cost of petrol. He said margins per litre retained by filling stations were down to 3p a litre and retailers were going out of business and closing at the rate of 500 a year 'The wholesale cost of product from the oil companies has increased by as much as 1.5p per litre in the last week,' he remarked. Retailers were struggling to keep up and pay their own rising fuel bills, he said. British Gas's fuel price hike came into effect yesterday. The former state supplier is increasing its gas and electricity prices by seven per cent.

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