Prices at the pumps have hit an 18-month high and the PRA is warning they will rise further as the effects of higher wholesale prices kick in.

PRA chairman Brian Madderson said: "The wholesale costs for both petrol and diesel rose by nearly 5ppl during the month of December, due to increasing global oil prices following on from the historic agreement between OPEC and key non-OPEC producers including Russia. However, prices on the forecourt moved up by only 3ppl, so there will be pressure for further increases."

He warned that prospects for 2017 looked disappointing, as oil prices were still increasing.