UK: Price rises of as much as 8% are expected for petrol this month.
The Retail Motor Industry Independent Petrol Retailers Association said rises in VAT and fuel duty were forcing up costs at forecourts.
It said prices could increase by 3% this month and 8% by the start of 2011.
Scottish Liberal Democrat leader Tavish Scott MSP urged the UK Government to cut fuel taxation. "A surge in petrol prices is the worst economic news for Scotland," he said.
Average UK petrol prices have fallen slightly after spending most of June a quarter of a penny above 118p a litre.
Unleaded prices have fallen by 0.6p a litre from 118.1p a litre to 117.5p a litre.
Diesel prices have also fallen, by 0.6p a litre, from 120.5p a litre to 119.9p a litre. The price difference between unleaded and diesel has remained at 2.4p a litre.
London recorded the highest price for unleaded at 118.7p a litre. Yorkshire and Humberside and the North West recorded the lowest price for unleaded at 116.2p a litre.
Northern Ireland recorded the highest diesel price at 121.1p a litre. Yorkshire and Humberside have the cheapest diesel at 118.8p a litre, according to figures released by the AA.
