AS the price of unleaded petrol hits record highs, bus and taxi services are struggling to keep their own prices down.

Yesterday drivers were lucky to pay less than a pound a litre for unleaded petrol as prices went as high as 103.9p, beating the previous record of 102.92p on Boxing Day. (Although one garage in the area was selling unleaded at 108.9p in November.) Independent taxi driver Mike Gale, of Poole, was among those voicing his frustration.

"When there are fuel price changes, air lines can put on a fuel surcharge. We can't, but we have to make a living," he said.

Murco Service Station on Ringwood Road at Bear Cross is currently charging 103.9p a litre while the Shell garage at Bere Regis is charging 102.9p.

Tesco garages at Branksome, Tower Park and Fleets Bridge provide a rare litre at under a pound, at 99.9p.

Jenni Wilkinson, spokeswoman for Transdev Yellow Buses, said: "We have no proposals to change our fares in the immediate future, but obviously cannot rule out increases if costs continue to escalate."

She added: "The constant upward trend of fuel prices is a serious concern and we are keeping the price of fuel under close review."

Members of Bournemouth's Taxi and Private Hire Joint Committee will meet within two weeks to take motoring costs into consideration, as they prepare to meet Bournemouth council in April.

Chairman Ashley Miller said: "If prices continue to rise we will be asking to increase the tariff. We don't want to but fuel and insurance prices are going up."

The Freight Transport Association has responded by stating that the Government should abandon the 2p a litre fuel duty increase planned for April.

A spokesman for the FTA, which represents operators of over 220,000 lorries, said: "The 100 dollar barrel is not only bad news for the transport industry, it is bad news for all of us."