The latest blow is the prediction that petrol prices could soar to a staggering £1.50 a litre by the end of the summer.

Record crude oil prices allied to distribution problems at European refineries are blamed for pushing the price of driving ever upwards. And nowhere is the impact of the fuel costs more keenly felt that in Northern Ireland.

Petrol, at an average of 108.5p per litre, costs more here than anywhere else in the UK apart from London and diesel, at 117.8p, is the third most expensive nationwide.

Those who will be most affected by the cost surge on the forecourts will be people living in rural areas, where the car is a necessity, not a luxury. Even those fortunate enough to live along the border and who can fill up the tank in the Republic will find that fuel prices are less of a bargain due to the current strength of the Euro against sterling.

The rising cost of oil has wider impacts, of course. They add to the costs of distribution of practically all household goods, and our peripheral location means even higher prices in the shops. While, according to the Cost of Living Index inflation is running at only 2.5%, the real drain on our incomes is much higher according to media reports. This newspaper revealed earlier this week that our grocery bills are going up by £600 a year.

Factor in higher prices for home heating oil, impending hikes in the cost of gas heating, rates increases and higher mortgage charges due to the global credit crunch, and it is estimated that the average family will have to find an extra £1,500 a month. That is a real squeeze on household budgets in a province which still has one of the lowest wage economies in the UK.

Never has the advice to shop around been more pertinent. Petrol and diesel costs can vary quite substantially as can the prices of goods and services. However, even the most prudent shoppers will only be tinkering at the margins of their budgets and rising costs will inevitably mean a tightening of belts.

The hardest hit will be those on fixed incomes, particularly pensioners. For them, claims that the UK's economy is one of the strongest in the world is a very hollow boast. Instead they see their standard of living being continually eroded by factors well beyond their control. It looks like being a very uncomfortable year for many people.