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Last Modified: 03 Jul 2008
By: Bridgid Nzekwu

The record oil prices are causing problems across the board, including local councils who warn their rising fuel costs could force them to cut services.

But today the chancellor said councils wouldn't be exempted from fuel duty, insisting that everyone is feeling the pinch.

His comments come after this programme obtained figures showing councils in England and Wales are paying £200m more for fuel than they did two years ago.

Channel 4 News has this exclusive report.