Are we really paying more to fill up?

In the wake of soaring oil prices, you could be forgiven for thinking that filling your car's petrol tank has never been more expensive.

The cost of oil has hit record levels, recently. US traded crude reached $42.45 a barrel earlier in the week.

But are drivers in forecourts across the country really paying more than ever for their petrol?

Many economists believe that, allowing for inflation, the cost to the consumer is cheaper than it was during the oil crises of the 1970s.

Terrorism fears

In 1973, massive oil price rises were sparked by Opec, when the oil producers cartel blocked crude exports in protest at Western support for Israel during the Arab/Israeli war.

Oil prices soared at the end of the decade after Ayatollah Khomeini seized control of Iran - one of the world's major oil producers.

Today, crude prices are again soaring, fuelled by fears of terrorism and increasing global demand for oil from emerging economies such as China.

However, research carried out by the BBC's Breakfast programme shows that - in real terms - we may not be paying as much for our petrol as we think.

In 1975 a litre of petrol cost 16p, according to motoring organisation the AA.

In 1985 the cost was 44p; in 1995 it was 60p. Today, the average cost is 83p.

But, allowing for inflation, the cost to the motorist is a different story.

BBC Breakfast calculated that the price of a litre of petrol would have been 85p in 1975 - 2p more than it is today.

Long view

In 1985 the price would have been 84p, while in 1995 it would have been 73p.

"If you look in real terms, the increases in petrol and oil prices are not as great as one might think," says Julien Seetharamdoo, international economist with consultants Capital Economics.

"Taking into account inflation, petrol prices are slightly less than during their peak in the 1970s."

In real terms, Mr Seetharamdoo says the cost of a barrel of benchmark US traded oil is much less than current levels.

At its peak in 1979/80, crude reached around $40 a barrel. In today's prices, that figure would be $80 a barrel.

"The oil price is roughly half of what it was in late 1979 in real terms," he says.

Separately, the cost of owning and running a car has changed relatively little in the past four decades.

The cost of running an average car in 2003 - including car price, tax, maintenance, insurance and fuel - was �5,335, according to the RAC motoring group.

Using Office for National Statistics figures, BBC Breakfast calculated that - in today's money - an average car in 1975 would have cost �5,387 to run, �52 more than last year.

In 1985 the cost would have been �5,128, while in 1995 the cost was �5,024.