Petrol and diesel prices are at their lowest for two years, with supermarkets paving the way for unleaded prices to dip under the 70 pence per litre mark.
The Morrisons Group was the first to slash prices across its 88 forecourts, which resulted in Esso, Shell and BP mirroring the cut in competing areas. Tesco, Sainsbury, Asda and Safeway then joined the petrol price landslide, sending prices back to levels last seen in April 1999.
According to fuel management specialist Arval PHH, prices have been steadily falling since the terrorist attacks of September 11, creating uncertainty in world oil markets with a drop in aviation fuel demand, and greater likelihood of the US entering a recession.
The price of crude oil has fallen by about $8 per barrel to $21-$23 since the disaster, and with the time lag between barrel and forecourt prices, Arval PHH believes pump prices could go lower than the current 75.2ppl average for unleaded, compared with 76.7ppl a month ago. (November 1, 2001)