Danny Alexander is writing to Tesco chief executive Sir Terry Leahy to demand that the gap in fuel prices between the two locations be removed permanently.

The company caved in to pressure from the public and local politicians in August when it announced that both stores were reducing the pump price to 93.9 pence per litre for unleaded and 95.9 pence for diesel.

The introduction of uniform prices followed an outcry that Tesco was charging four pence per litre more for unleaded petrol in Inverness compared to Elgin, where the company faces competition from Asda.

Now the anomaly, which angered motorists in the Highland Capital, has been reintroduced as experts warn that prices could rise to £1 a litre within weeks amid refinery problems and fears that global instability could restrict supply.

On Friday, Tesco Extra and Tesco Inshes were charging three pence more for diesel and one pence more for unleaded petrol than their counterparts in Elgin.

Diesel was selling at 97.9 pence in Inverness compared to 94.9 pence in Elgin whilst unleaded was priced at 96.9 pence compared to 95.9 pence.

Mr Alexander, the Liberal Democratic MP for Inverness, Nairn, Badenoch and Strathspey, said the rise was another "appalling" example of what happened when one supermarket was dominant. "Without clear competition, Tesco is taking advantage by putting the prices up in Inverness," he said. "I think this is pretty cynical, given that Tesco promised to reverse the gap between Inverness and Elgin last August.

"For a company that is desperate to get planning permission for another store in Inverness it does not show a great deal of respect for the consumers in Inverness who have spent so much money in Tesco over many years."

Fergus Ewing, the SNP MSP for Inverness East, Nairn and Lochaber, echoed Mr Alexander's concerns, saying he could think of no commercial reason why fuel prices should be higher in Tesco's stores in Inverness.

The advertised pump prices at Tesco's Inshes outlet shows the cost of a litre nudging close to £1. Northern Exposures

"Motorists and myself will conclude that they are simply taking advantage of their dominant position in the Inverness market," he said. "Since this is not the first or even the second time that this apparent profiteering has been raised locally, I feel that Tesco's senior management have a duty to provide a detailed explanation and as well as urging them to do just that, I would be calling upon them to reduce the Inverness prices forthwith, bringing them down to the level they see fit to charge just 40 odd miles along the road."

Labour councillor John Holden (Inverness South) responded to Tesco's actions by calling for Highland Council to look sympathetically at other supermarket chains wishing to move into the city.

"We are paying over and above the price for our fuel in Inverness," he said. "What we need is some competition."

Yesterday Tesco would not comment specifically on the Inverness-Elgin differential but reiterated its policy of not operating one national price but being competitive within the local catchment area for each store.

"There could be times when Tesco may not be the cheapest in the locality," a spokeswoman said. "Over an extended period of time we would expect to offer great value on fuel, with the added benefit of clubcard points.

"We check the prices at our own petrol stations versus our competitors daily and we are confident that the local customer is getting a great deal on fuel."

h.paterson@inverness-courier.co.uk

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