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The long wait is over!

The news will have punters dancing on the forecourts as supermarkets have started cutting petrol prices after the price of oil fell sharply in the past week, putting pressure on energy providers, to follow suit with household bills.

Brent Crude fell below $100 a barrel – the first time in six months. Asda, Morrisons and Tesco have already slashed their prices, and many are predicting gas prices to decrease too.

Asda has lowered its pump price 132.7p a litre – down 2p, and Tesco will reduce its prices by a penny a litre.

Adam Scorer of Consumer Focus, thinks other petrol providers will need to transfer savings made by the drop in oil prices to the price of petrol on the forecourt, or else risk alienating consumer trust: 'Consumers will question whether they're getting a fair deal if prices don't come down as quickly when costs fall as they go up when costs rise,' he said.

'Decreases in oil prices should be reflected in the costs passed on to consumers at the petrol pump and any fall in gas prices should lead to cuts in the prices customers have to pay to heat their homes,' he added.

Tanner, of Bank Sarasin, applauded the fall in prices. 'Oil and other commodity prices are going down because of rising risk aversion and the economic slowdown. The role of speculators is not fully understood, although it seems likely that they have had also some impact on oil prices,' he said, adding: 'Low oil prices are good for the economy because they make things like [petrol] cheaper and leave people with more money to spend on other things. Oil prices are correlated to other commodities, such as base metals like copper.'

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