Currently reading: Petrol prices below £1/ litre
Fuel prices dip below £1 a litre for the first time since December 2007

Petrol prices in some areas have fallen under £1 a litre for the first time since December last year.

The supermarket chains Morrisons and Asda announced they would cut prices by 5p, to 99.9p for unleaded and 111.9p diesel as of today.

Meanwhile some non-supermarket petrol stations in the West Midlands were also selling unleaded for under £1 per litre.

Today’s national average cost per litre of 95-RON unleaded was 106.9p, while diesel was at 118.2p.

It’s the first sign that UK forecourts are beginning to respond to falling crude oil prices. Oil prices peaked at just over $140 a barrel in July, with a barrel of Brent Crude valued at $76.54 as this story is filed.

However a spokesperson for the Petrol Retailers Association warned Autocar that fuel prices could rise again near Christmas as demand rises for the holiday season.

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theop 5 November 2008

Re: Petrol prices below £1/ litre

Now thats a textbook answer! ANd in short response! Many thanks horseandcart, you obviously know your apples...

and apols about the rant on victimising the futures industry... tough day at the office... You are largely right of course, there are way too many monkeys in the financial services and everybody gets a bad name after them...

theop 5 November 2008

Re: Petrol prices below £1/ litre

I agree with most of the above and horseandcart in particular, though I would not be going as far as bewitching every hedge fund or commodities staffer across the industry ( I belong in that clan too) nor would I oversimplify what is a very complicated situation with regards to energy futures and their connection to price spikes.

Futures & forward contracts, speculators and all other claimed "evil" factors are there for a good reason. You guys above do a bit of googling for that and you ll read the answers - i m happy to provide my personal e-mail on request for tutorials too..... In the meantime, just refrain from generalising and victimising a whole industry simply because you do not understand it fully and instead give us some input on why for example diesel prices are always higher than petrol.... Is it because govmnts know they can get away with more taxation as diesel is more economic?

sierra 5 November 2008

Re: Petrol prices below £1/ litre

Just dropped below an euro per litre here in Spain, and it was noticeable on my regular trans-Iberian journey last week that average speeds have returned to "normal" already, thus nullifying the drop in price with higher consumption.