MOTORISTS received a rare financial boost as figures showed the cost of petrol and diesel has dropped to a four-month low.
The
AA Motoring Trust
said the average price for a litre of unleaded petrol fell to 94.86p - the lowest price since April 18 when a litre cost 94.58p. And diesel users also benefited with the average litre costing 97.05p - the cheapest since April 12 when it was 96.92p - as supermarkets slashed the price of fuel amid settled oil prices.
Last week Asda cut the cost of unleaded petrol to 91.9p and diesel to 93.9p with Tesco and Sainsbury's also pledging cuts.
The price drop has coincided with lower oil prices with a barrel of light sweet crude and Brent crude levelling out at around 70 US dollars compared with around 78 US dollars earlier this month.
The market has settled following the ceasefire in the Middle East and after tropical storm Ernesto bypassed the Gulf of Mexico, quelling fears that key oil platforms would be damaged by high winds.
Global problems
But fears persist that pump prices could be reignited by a raft of simmering global problems, including a flare-up in violence between Israel and Hezbollah militants in Lebanon.
Analysts see Iran's stand-off with the UN over its nuclear programme as another cause for concern, while there are also lingering fears over supply disruption in Nigeria - the world's fifth biggest oil producer - due to continuing civil unrest.
Luke Bosdet, from the AA Motoring Trust, warned drivers that prices were susceptible to a "jittery global market" that could change at any moment.
He said: "The fall in petrol prices over the last couple of weeks has been a welcome break for motorists but don't bank on them continuing to fall. I think it is unlikely supermarkets will cut their prices again and we may have reached a plateau. I am not sure the average price will come down further."
Mr Bosdet warned that drivers were "not out of the woods" and said there was still time for another storm to hit supplies in the Gulf of Mexico.
Comments
Login or Register to comment
I bet that the petrol companies are already planning to rise the price again, They just seem to raise the price then drop it again and we all have to think that they are great people and are doing it for us hard done to motorists.
Oh Wow, it's dead cheap now. I think i'll but a 5 litre guzzler on the back of this story.
I wonder if First bus will cut their fares now that the price of diesel has come down.
Thought NOT
Will someone please correct me if I'm wrong here.
I believe that Diesel is a byproduct of refining Petrol, if this is the case why is it dearer than Petrol & not cheaper, as production costs have to be less. Or is this the case of Diesels becoming more popular so lets hike the price up & rip the motorist off even more.
A few pence drop in price is welcome, but let's face it, we have pretty much the most expensive fuel in Europe & have had for some years now, so it's just the usual case of "dangle the carrot" to keep the public happy, I don't think so.
Petrol has just dropped to 88 cent a litre here in Canada. It usally goes up and down evry couple of days fom 5 cents to 15 cents. Either way people are not happy here with the coninued increase Why is it so dear in England. My dad spends 100 quid a week going from manc to liverpool. In england we get ripped off with most things.
This the usual scam ? they hike the price up so that we are all shocked then a few weeks later it goes up a little then when it gets to the ¿¿5 a gallon we moan but put up with it >>I remember when petrol went up tp ¿¿3 a gallon they did the same then .the government know how to control the british public and we always fall for it ??You stupid british people ? The french and other countrys fight and complain at least .we british just bury our heads in the sand and wait for the next price hike.....stupid sheep
At last, I can drag my 7.2 liter Bristol 411 out of the garage now and afford to put gas in it! No cat converters, uses leaded and returns 11 MPG around town (not much more on the motorway). I can feel the anti everything lobby crying in there lentils and aching in their sandals as we speak! Ha.