Oil producer BP said record fuel prices and better refining margins had helped it to earn nearly £1m a day in profits.

BP reported profits of £2.14bn for the three months to September 30 and said the outlook for the rest of the year was positive.

Its performance was lifted by the sustained rise in oil prices due to the loss of production in the US following Hurricane Ivan, low inventories and limited spare capacity.

Oil prices averaged nearly $50 a barrel so far this month and a barrel of Brent crude for December delivery traded at $50.78 a barrel on the markets yesterday.

The profits bonanza is likely to reignite anger among motorists who have seen petrol prices jump ten per cent this year, with a litre of unleaded currently costing a 84.3p.

But the AA motoring organisation said BP could not be accused of excessive profiteering as 75 per cent of the cost of petrol and diesel went to the Treasury in the form of tax.