Petrol prices may fall below the £1 per litre mark Petrol prices are set to fall to below £1 a litre by the end of this month for the first time in six years, analysts have suggested. A global slump in the price of oil and fierce competition between supermarkets has seem the cost of fuel tumble leaving consumers with more cash in their pockets, boosting economic growth in the run-up to the general election. The forecast is based on Brent crude which earlier this week fell to below $59 a barrel for the first time since May 2009 – and looks set to continue to drop. Analysts have predicted that the world price of oil will continuing falling, with experts at bank Morgan Stanley suggesting that prices could even drop below $35 a barrel, but others have warned that prices are expected to rise again at the end of the year. In July the average cost of fuel was 131.6p a litre when a barrel of oil fetched $105 globally Asda, Morrisons, Sainsbury’s and Tesco all confirmed this week they would knock two pence off their price for fuel, bringing the price to 107.7p a litre this week. Motoring groups suggest that families could save as much as £8 per refuel in comparison to prices at the beginning of the year. RAC fuel spokesman Simon Williams said: “What’s currently happening at the pumps with falling fuel prices is something many motorists will not remember seeing before.” In July 2009 the average price of unleaded was 103.09p per litre, with diesel slightly higher at 104.22p per litre. Some have cautioned such optimism. AA spokesperson Luke Bosdet told the Mirror: “Global oil prices have to fall another third to get to £1 a litre. A weaker pound makes that target further off.”
Posted on: Sat, 03 Jan 2015 14:14:39 +0000
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