For some time now, we’ve been debating whether petrol would drop below the one pound per litre mark. For some time, The RAC have seem convinced it would happen, while The AA have remained less sure.
Well now, as we predicted at the end of last week, the optimists were right. Unleaded petrol has finally dropped below one pound at at least one garage, and this “sub-one-pound” petrol had caused a flood of news stories.
The Mirror, amongst other news outlets, have reported on an independent petrol station in Walsall (Birmingham) offering unleaded for 99.7 pence per litre, resulting in the local supermarkets quickly dropping their prices to around 103 pence per litre in an attempt to compete.
It’s now reasonable to expect that other garages will follow suit, and that 99p petrol will become more widespread as the week progresses.
Interestingly, The RAC and The AA are still very much at odds on what this means for the future. Having been proved right about the price drop, The RAC are now bullish, and quoted as saying that £1 per litre petrol will soon be a “common sight” across the country. The AA, in something of a face-saving move, have dismissed the cheap petrol as a “publicity stunt” according to to the Express and Star, maintaining that the reductions “may not last.”
We will obviously follow developments very closely, and like UK motorists will hope the the optimistic RAC are correct in this case!
IMAGE CREDIT: Geograph
Things will not stay this way forever. Enjoy it while it lasts.
Given that the barrel price of oil is now at an real low in recent years how can we effectively pressurise all garages to reduce their prices quickly and to a consistently close margin? Am I right in thinking each garage is independently able to set their price even though they hold the Esso/Shell/BP etc badge above their forecourt? The price of fuel is a major if not the major factor in transport of goods costs to business let alone the private user as it has a direct impact on the economy for everyone. The government still takes it’s cut in tax on fuel – and quite outrageously add a 3p surcharge for diesel for NO good reason so why are they so impotent in applying pressure to these companies to reflect the lower prices? It seems to me the government whoever they may be at any point should by law force these companies into a locked in formula that prevents them skimming more and delaying longer real changes in price. Too little too late is the norm which is frankly unacceptable to the millions of us at the mercy of the big oil giants, shame on them.
As soon as the USA start exporting oil, prices will reach an all=time low. This should happen later in the year. Watch this space.
Keith: There is no 3p surcharge on Derv – where did you get that idea?
Of course independently owned garages selling Esso/Shell/BP fuel set their own prices. Why on earth the Government should interfere in a free market I can’t imagine (they already take the majority of the price at the pump via Duty and tax). Enjoy the lower prices whilst they last.
Arthur: The US has always been permitted to export refined products (petrol and Derv) so exporting light crude isn’t that exciting.
Things will not stay this way forever. Enjoy it while it lasts.
Given that the barrel price of oil is now at an real low in recent years how can we effectively pressurise all garages to reduce their prices quickly and to a consistently close margin? Am I right in thinking each garage is independently able to set their price even though they hold the Esso/Shell/BP etc badge above their forecourt? The price of fuel is a major if not the major factor in transport of goods costs to business let alone the private user as it has a direct impact on the economy for everyone. The government still takes it’s cut in tax on fuel – and quite outrageously add a 3p surcharge for diesel for NO good reason so why are they so impotent in applying pressure to these companies to reflect the lower prices? It seems to me the government whoever they may be at any point should by law force these companies into a locked in formula that prevents them skimming more and delaying longer real changes in price. Too little too late is the norm which is frankly unacceptable to the millions of us at the mercy of the big oil giants, shame on them.
As soon as the USA start exporting oil, prices will reach an all=time low. This should happen later in the year. Watch this space.
Keith: There is no 3p surcharge on Derv – where did you get that idea?
Of course independently owned garages selling Esso/Shell/BP fuel set their own prices. Why on earth the Government should interfere in a free market I can’t imagine (they already take the majority of the price at the pump via Duty and tax). Enjoy the lower prices whilst they last.
Arthur: The US has always been permitted to export refined products (petrol and Derv) so exporting light crude isn’t that exciting.