(AFP) — Michelin, one of the world’s leading tyre makers, on Friday hiked prices and said that from now its charges for auto manufacturers would be indexed against the cost of oil.

“From April 1, the price of (Michelin) tyres will be adjusted each time the price of a barrel of Brent (North Sea) oil moves by five dollars (3.24 euros),” a company spokesman told AFP without specifying the immediate impact on prices.

“This framework, which can evolve, will apply to tyres for cars and vans sold to vehicle manufacturers and not in the retail sector,” he said.

“About 60 percent of the cost of making a tyre for cars or vans arises from products made from oil,” Michelin said.

“The recent spectacular rise in the price of (oil) therefore has an impact on the cost of Michelin tyres.”

Michelin raised its prices at the end of February by 3.5 percent for car and van tyres in the 15-country eurozone and by 3.9 percent for truck tyres in continental Europe.