Petrol prices could reach their lowest level since 2009 – down to 86ppl - as the major banks predict oil prices could fall to below $10-a-barrel.
Oil prices have already collapsed by 15% this year prompting the major banks such as Standard Chartered, Goldman Sachs, RBS and Morgan Stanley to make bleak forecasts as far as oil prices are concerned.
The gloom for oil companies was echoed by the announcement that BP plans to shed 600 jobs from its operations in the North Sea, amid a package of cutbacks in which around 4,000 staff globally will lose their jobs.
However, it’s all good news for motorists according to RAC fuel spokesman Simon Williams: “This latest prediction of oil hitting just $10 a barrel would have the potential to take petrol prices down to around 86p per litre – the last time we saw average prices this low was in early 2009. However, for prices to get this low the pound would have to get no weaker against the dollar than it is today.
“As global oil prices continue to slide, they expose just how much British motorists are paying purely in tax at the pumps. It is worth remembering that even if oil was almost given away, motorists would still be paying fuel duty and VAT. At $10 a barrel, tax would account for around 84% of the total price per litre – a clear indication of just how high a proportion of every litre we buy goes straight to the Treasury.”