Daily Express says 74p a litre soon - clicky
More top class jounalism 
I doubt it will drop that far, or soon, but the recent credit crisis will make a big dent in the already-reduced demand for oil. Add to that, an increase in exploration/production, a significant increase in the number of VLCCs (tankers) due to be delivered over the coming year, and you have the recipe for cheaper oil. It will drop below £1/litre, but I think 74p is a bit optimistic.
but how long will it stay there?
sorry to sound pessamistic
Brent crude down $4.50 this morning to just over $86!!
On to your point...the price won't stay below £1/litre (when it gets there!) forever, that's for sure. It's very difficult to put a time-period on it, but I see the basics of supply/demand favouring lower prices until the next economic upturn.
no i agree, inflation will always play a part
when the prices rose about £1 a liter the government were bracing for a fit of demos by various organsations, this didn't happen, so as a result we (the public) have in the governments eyes rolled over and accepted it.
i suppose what i was trying to say was how long before HM government increase tax in order to keep to price of petrol up and reinflate the coffers within HMRC?
On the one hand I agree that the
thieves government would be keen to raise more revenue but, on the other hand, economic logic would suggest that cheaper oil would aid the stimulation of the economy. Stagflation (inflation/stagnant growth) is to be avoided at all costs.
But could the government resist the temptation to squeeze a bit more out of us, even if it doesn't make economic sense?
Rhetorical question, methinks.
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Topic: Petrol Prices (Read 2423 times)