The Morrisons Group was the first to slash prices across its 88 forecourts, which resulted in Esso, Shell and BP mirroring the cut in competing areas. Tesco, Sainsbury, Asda and Safeway then joined the petrol price landslide, sending prices back to levels last seen in April 1999.
According to fuel management specialist Arval PHH, prices have been steadily falling since the terrorist attacks of September 11, creating uncertainty in world oil markets with a drop in aviation fuel demand, and greater likelihood of the US entering a recession.
The price of crude oil has fallen by about $8 per barrel to $21-$23 since the disaster, and with the time lag between barrel and forecourt prices, Arval PHH believes pump prices could go lower than the current 75.2ppl average for unleaded, compared with 76.7ppl a month ago.
- WITH the risk of the war against terrorism spreading to major oil producing countries in the Middle East, the Government has revealed it has enough oil stocks to last 72 days.
Brian Wilson, member of Parliament for North Cunninghame, said that according to data as at 31 August 2001, the UK has 4.2 million tonnes of motor spirit, including stocks of crude oil, equal to 72 days worth of consumption.
He said: 'This is considered to be more than adequate, especially given the level of our indigenous resources of crude oil, to meet the UK's needs or UK contribution to any international response to an oil supply shortage.'