Petrol Prices could well fall below a £1 a Litre
Fuel prices are set to plunge to £50 a barrel since 2009 as indicated by a retail chief. Chief executive of Sainsbury Mike Coupe forecasts that with the oil prices all set to fall, prices of petrol will most certainly follow suit. If Mr Coupe’s predications are on track, petrol would be sold across the country in the first few months of 2015 at below £1 per litre. RAC spokesperson Simon William claims that what’s happening at the pumps today and over the course of the next few months is something motorists will have never witnessed before.
RAC fuel reports indicate that the average price of a litre of petrol is 116.9p, which is much cheaper that what it was at the beginning of the year, 14p a litre less to be exact. But petrol prices are not the only ones set to fall, diesel prices have dropped by 16p, where they were 138.24p in January 2014 to 122.33p a litre at the end of last year. This significant savings in both petrol and diesel prices not only results in economical daily commute, but also makes it easier to visit family and friends and makes running a car that much cheaper at the moment with commercial insurance rates set to rise later in the year.
Petrol and diesel prices were slashed by Sainsbury this week by over 2p per litre, so fuel prices to fall below £1 per litre is almost inevitable. The energy industry has anticipated more cuts in global prices, which will be consequently passed onto customers in many ways such as air fares and fuel bills. Ministers claim that fuel industries are being constantly watched to ensure that this drop in crude oil prices is adequately reflected in what consumers are charged.
Chancellor George Osborne said at a recent cabinet meeting that it is crucial for these savings to be passed onto the public and quickly through various channels such as at petrol forecourts and utility bills. This plunge in crude oil prices has resulted in weak demand and plentiful supply, and therefore created havoc on global stock markets. According to market analyst Alastair McCaig, oil continues to dominate the markets, where the FTSE 100 index plunged 50.65 points to 6366.51 in London recently and the same drop was seen across major stock markets in Europe.
The shares of some of the FTSE 100 Index heavyweights such as Royal Dutch and BP were also on a slide as petrol prices at the pumps have tumbled recently. It is anticipated that petrol prices under £1 per litre will be a significant boost to motorists and fuel-dependant industries. In addition, it will also play an important role in the global economy and provide a much needed lift to the UK. The average energy bill currently is a staggering £1,265, which is approximately 150% more than what it was a decade ago, making it the biggest reason for concern for consumers.
The best advice in order to get the best deal is to shop around at the pumps and when heating your home.