Petrol prices have hit an all-time high, leaving motorists across the county feeling the pinch and industry bosses warning many small firms could be driven out of business.

A litre of unleaded is now averaging 103.4p on forecourts across the city, while diesel has risen to an average of 108.6p per litre.

Oxfordshire motorists are among those facing the highest fuel costs in the country meaning a driver with a typical 50-litre (11 gallon) tank now has to spend £51.70 to fill up - £7.41 more than they did a year ago.

However, business leaders have warned it is companies which are bearing the brunt of the price rises.

Barry Wheatley, chairman of the Oxfordshire Federation of Small Businesses, said: "Diesel prices are cutting into the margins of businesses and I can see that some firms will really be struggling in the next few months.

"It's an enormous jump on price in just a matter of weeks. If fuel prices stay the same some smaller businesses will think it is not worth the struggle to carry on.

"When you have one of your raw materials increase in price so dramatically it really does have an impact on your plans."

Despite the increases it appears blockades or strikes - which almost brought the country to a standstill in September 2000 when the cost of unleaded reached 81p a litre - are not on the cards.

Mr Wheatley, who represents 2,500 small businesses, said: "It's been staggeringly quiet.

"The Federation of Small Businesses is looking into what it can do at the moment to get its point across to the Government, but there has been no talk of blockades."

One local firm which is already thinking of closing is KT Couriers, in Boars Hill.

Keith Toomey, 69, who has run the business for the last 16 years, said: "It's terrible. I can't afford to do the job anymore. It's just getting out of hand, it's ridiculous.

Mr Toomey, who once ran a fleet of 13 vans, added: "My profit margin is down to next to nothing. I have not put my prices up since 2002.

"This time I'm going to have to start adding an extra £10 or £15 per hundred miles for the cost of fuel.

"I've been trying to keep going but it's getting to the stage where I can't. If things do not brighten up this month I will knock it on the head, I think."

Roy Tasker, the owner of RM Couriers, in Wheatley, said he was finally going to have to pass on some of the cost increase to his customers.

He said: "We've eaten up the price rises so far but it's getting to the stage where our prices will definitely have to go up.

"We spend about £45,000 a year on fuel and I can see that going up by about 10 or 12 per cent.

"People seem to be resigned to the fuel costs, but it's driving firms out of business. The fit companies will survive but the weak will not.

"Some of the ones that are running on very close margins will go to the wall most definitely."