The oil price is a real problem and production needs to rise, British finance minister Alistair Darling said on Thursday.
In a radio interview with the BBC, Darling said high oil prices were feeding inflationary pressures not just in Britain but around the world.
"Oil was yesterday over $140 a barrel.When you consider that a year ago it was half that, this is a real problem for us," he said.
"We have got to ensure two things I think. One is that we can increase production of oil in the short term but also in the longer term we have got to reduce our dependency, particularly for our country, on imported levels of oil and gas."