RISING diesel and petrol costs are putting the squeeze on motorists and transport businesses.

Prices across Bolton are going up in line with the rest of the country and diesel is now costing as much as 87.9p per litre.

Road hauliers are warning some firms will go bust if prices continue to rise. The previous high price for diesel was last October when it rose to 87p in parts of the country.

The BP garage on Bury New Road, Breightmet, is now selling diesel at 87.9p and unleaded petrol at 83.9p, prices having risen since Monday. But motorists who shop around can find cheaper fuel. The Shell petrol station on Crompton Way, Tonge Moor, is among the cheapest in the town.

Unleaded petrol there, which was 79.9p on Sunday, rose to 80.9p on Monday. Diesel went up from 84.9p to 85.9p.

Asda in Horwich is charging 85.9p for diesel and 81.9p for unleaded.

Imram Akram, manager of the Shell garage in Crompton Way, said: "It's unreasonable to expect motorists to pay around 88p for diesel and 83p for petrol. We're trying to keep the costs as low as possible but the situation is getting worse."

Prices have gone up because of an increase in demand for oil, particularly from China. A barrel of Brent crude oil rose above $56 (£29) for the first time. Diesel has risen at a faster rate because cold weather in America has led to a greater demand for fuel for heating.

Haulier Barry Booth, owner of James Booth (Bolton) Ltd, of Manchester Road, Westhoughton, said: "I think we'll see a lot of bankruptcies this year and I admit we're struggling to keep up.

Warren Davenport, director of Lancashire Freight Services, of Moss Road, Kearsley, said: "Pretty much everything is carried by road in Britain and the rise will eventually have a knock-on effect and be passed down to the man in the street with higher supermarket prices."