Oil prices drop even further
07/01/2015
All four major supermarkets in the UK have announced a further fall in fuel prices taking effect this week, bringing petrol even closer to £1 a litre.
Chancellor George Osborne has also commented on the oil price drop, warning that it is “vital” that consumers see the benefits, not only in pump prices but utility bills, heating oil and airline tickets.
Oil prices have recently halved, with Brent Crude now costing less than $50.00 a barrel. Slowing global growth and increased supply of oil and gas have pushed prices sharply lower in recent weeks. Many observers expect the price of oil to fall even further as North American producers continue to supply increasing quantities of oil and gas and Opec resists calls for cuts in production to support prices.
Six months ago oil cost $115 a barrel, and its currently at its lowest level since March 2009. Tesco, Morrisons, Sainsburys and Asda have all reduced prices by 2p a litre on both petrol and diesel.
Energy UK chief executive Lawrence Slade has claimed cuts in wholesale are being passed down to customers. He said:
"When people shop around they can easily find deals that are over £100 cheaper than this time last year and in line with cuts in wholesale energy prices"
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