Petrol to follow oil price falls

08/08/11
Shaun Teale

Motorists could be in for some relief from the global stock market crisis with the cost of oil taking big hit as economic confidence drained away around the world.

Asda has already said it will cut prices by up to 2p a litre at its 188 filling stations from tomorrow, with other supermarkets likely to follow suit.

Despite the recent slump in oil prices, the AA said the average cost of unleaded petrol yesterday stood at around 136.5p a litre, just a penny short of the record seen in May. Diesel is currently priced at more than 140p a litre.

The last round of cuts came in June when oil prices tumbled due to the opening of emergency reserves by the International Energy Agency.

AA head of public affairs Paul Watters described Asda's decision to cut prices as particularly welcome, although he warned that stock market speculators could quickly drive the price of oil back up.

He added: "The AA says drivers deserve a longer respite from near-record fuel prices during the holiday period, but nobody should underestimate the ability of so-called 'sentiment' in the commodity markets to drive prices back up again."