Will gasoline prices drop to £ 1 per liter within a few weeks? The oil price has more than halved in less than a month
According to AA, motorists could see the gasoline drop to 1 pound per liter within a few weeks.
The automotive group expected the fuel to fall to its lowest level in four years following the fall in oil prices triggered by the Covid19 pandemic.
Oil prices have more than halved from almost $ 60 a barrel to around $ 26 in less than a month as fears of a global recession, travel restrictions, and a dispute between Saudi Arabia and Russia over production levels increase.
The wholesale cost of oil paid by fuel dealers has dropped from 33.5p per liter in the last week of February to 18.7p this week.
The AA automotive group expected the fuel to drop to its lowest level in four years following the fall in oil prices triggered by the Covid19 pandemic
Once VAT is included, that’s a 18p decrease. If this were passed on by retailers, the AA would lower the average price of gasoline from around 121p to 103p per liter.
With supermarkets tending to be cheaper, some forecourts could sell petrol for £ 1 per liter over the next few weeks.
AA Fuel spokesman Luke Bosdet said: “If retailers don’t pass on these savings sooner or later, AA and other automotive companies will likely pass this on to the Competion Watchdog.”
Howard Cox, founder of the FairFuelUK campaign, called for an independent pump price watchdog.
He said: “Wholesale prices for diesel and gasoline have dropped. The pump prices have not nearly followed. The gap is growing day by day.
“It is more than shocking that during an unprecedented health crisis, there are companies that are deliberately holding back the cheap prices on the pumps.”