Plunging oil prices could bring petrol prices down to early 2009 levels
Already prices have fallen to under $30 a barrel – the lowest level in 12 years – and according to The Telegraph, Standard Chartered has now joined a number of banks that have downgraded their outlook to $10 a barrel, including Goldman Sachs, RBS and Morgan Stanley.
Meanwhile oil companies such as BP are slashing jobs and pulling back on projects.
Price falls have been driven by continued oversupply as well as the fall in China’s currency compared to the dollar.
In response, RAC fuel spokesman Simon Williams said: “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.”