Price at the pumps is set to keep dropping

Petrol prices could drop below �1 a litre in the new year
Petrol prices could drop below �1 a litre in the new year
8/8/17

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READERS have been reacting to news that petrol could fall to below £1 a litre.

Motoring organisation the RAC is predicting that prices will fall due to the plummeting price of global oil.

From a high of £1.38p a litre in January, drivers could see the price fall to its lowest price since May 2000.

Giles Babb, chairman of Emsworth Business Association, said: ‘This is fantastic for businesses.

‘It makes the pressure on smaller businesses a lot easier, especially if they’re out delivering goods and things like that.

‘Bills, along with wages, are one of the biggest outgoings a small business can have so it makes a big difference.

‘It should also make a difference to pubs that get dray deliveries and to other companies that rely on daily deliveries.’

Analyst Nicole Pharoah, 32, commutes by car to Guildford for her job.

The mum of one said: ‘I make long journeys to work so petrol is a major part of the family budget each month.

‘This will make a big difference to us.’

But not everyone was so confident about RAC’s prediction.

Commenting on The News website SHREK79 said: ‘I’ll believe it when I see it!

‘The companies will find every excuse under the sun not to pass on the full reduction to the consumer despite passing on any increase in full and immediately.’

And on The News’ Facebook page Terry Worrall said: ‘About time.

‘We have been paying over the odds for years, but I doubt it will last. The next government will soon be putting more tax on it.’

Phil Newbold added: ‘They should be 90p per litre now. Price per barrel warrants this.’

The RAC’s monitoring of fuel prices shows the average price of a litre of petrol was 116.9p on December 14.

That is down 13.89p on the start of the year when it was 130.79p. Diesel was 15.91p cheaper at 122.33p.

On Monday the average supermarket price of fuel was 114.26p for petrol and 120.18p for diesel.

Clare Satchwell is manager director of international interiors company The Contemporary Home on Hayling Island.

She said: ‘When petrol went sky-high a lot of our delivery companies added on a fuel surcharge, rather than increase the base price.

‘As a result of the fall in petrol we hope that will be removed.

‘The price of petrol does affect the way we travel.

‘We’ve had to hire lots of vans this year to travel across the country.

‘We went to Harrogate but it was a significant factor in not going to Glasgow – which we would’ve liked to have done.

‘It will be delivery costs where we will see the biggest benefits from this.’

On Twitter, KO Desai said: ‘The fuel price drop is welcome, but still too expensive due to double taxation through duty and VAT.

‘I wouldn’t mind paying so much duty/VAT on fuel if there were genuine improvements to public transport outside big cities.’

RAC fuel spokesman Simon Williams said: ‘What’s happening at the pumps with falling fuel prices is something many motorists will not remember seeing before.’

He added: ‘The cost of going to visit family and friends this Christmas will be the cheapest it’s been for nearly five years, but the prospect of petrol going below £1 a litre in the new year is incredible, particularly when prices at the beginning of 2014 seemed to be heading ever upwards.’