WHEN the country was crippled by the fuel protests of 2000, the average price of a litre of unleaded petrol was about 77p.

Last night, prices per litre at the pumps in Worcestershire were as high as £1.14 for unleaded and £1.24 for diesel. For those of us who still deal in old money, that's more than £5 a gallon.

The impact on huge increases in fuel prices for motorists - up 33 per cent in the last five years - was brought into sharp focus yesterday as oil giants Shell and BP announced record profits.

The two firms racked up profits of more than £7 billion during the first three months of this year, which means they are making more than £3 million an hour.

Both companies have undoubtedly benefited from the increase in crude oil prices, though they will claim the bulk of their profits come from exploration and production rather than from the forecourts of Britain.

And we should not forget that about 60 per cent of the total price of fuel ends up in the Treasury's coffers through fuel duty and VAT. Fuel duty needs to be flexible to compensate for varying crude prices.

We have no doubt, however, that the oil giants are making hay while the sun shines. And it is interesting to note that although an increase in the price of crude oil finds its way to filling stations almost immediately, firms like Shell and BP do not seem as keen to cut their prices when the cost of crude falls.