$100 a barrel oil brings £1.50 a litre closer
20th February 2008
(Aldershot, UK) Oil prices have closed above $100 a barrel for the first time ever, compounding fears that petrol prices are set to rise exponentially against the backdrop of a slowing world economy, tense oil markets and predicted falling oil production.
Figures from PetrolPrices.com show that the price of unleaded has shot up 18.3p per litre in the last year. At the beginning of February 2007 a litre of unleaded cost 86p. At the time of writing, both unleaded and diesel were hovering just below the record highs set earlier this year - unleaded is now 104.3p per litre and diesel is 109.5p
When oil prices passed the $100 a barrel in January this year, the national averages for unleaded and diesel shot up to 104.7p per litre and 110.5p respectively.
"We monitor the relationship between oil prices and petrol prices very closely — this is exactly the type of increase that spells disaster for motorists. The most worrying thing is that last time oil hit $100 barrel it was artificially inflated by a rogue trader wanting to claim his place in history as the first to buy oil at such a landmark price. This time, the price jumped as a result of speculation over conflict in Nigeria, a refinery explosion in Texas, market traders using commodities as a way to protect against the weak dollar and fears that Opec will cut production because oil reserves are drying up."
"If these conditions continue, we will hit £1.50 a litre this year. Alistair Darling is planning two further 2p fuel duty increases by October this year, and with such worldwide economic instability oil prices are likely to rise in the future. $100 a barrel is a significant figure — since unleaded hit £1 a litre it has continued to rise. The same will happen now oil has reached the equivalent psychological barrier. This makes it more important than ever to use PetrolPrices.com to get the best fuel price possible."
Notes to editors
Petrolprices.com is the only free price comparison website for fuel prices in the UK. It allows consumers to search for the cheapest stations in their area, with potential savings of 15p a litre. PetrolPrices.com has over 2 million registered users, and 87% of 5000 users surveyed in September 2007 claimed the site saves them over £100 per year. As fuel prices rise the potential savings grow because the spread between the lowest and highest prices stations widens.
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Louise Doherty
Spokesperson
PetrolPrices.com
e:
w: www.petrolprices.com
p: 01252 367208