Remember the summer, when petrol smashed through the £1.10 per litre barrier? Well, at that time oil was trading for $147 per barrel on the international markets, the price massively inflated by international demand and greedy speculators.
Since then the credit crunch and international recession have kicked into effect and the price of oil has plummeted, bringing pump prices down to far more reasonable levels.
A barrel of oil is currently trading for around $43, but experts in the US are predicting that it could drop as low as $25 if the recession hits hard enough. That would be a drop in over 80% from the peak, and while temporary is bound to bring some relief to motorists and businesses alike.
Sadly, here in the UK we won’t see an equivalent 80% reduction in the price of unleaded due to the fixed fuel duty added to each litre we buy. As of 1st October 2008 this was running at 50.35 pence per litre, but if the oil price does drop far enough we could see the price of unleaded dip below 80 pence.
Enjoy it while you can.
Source: Fox News