Petrol prices sink to lowest level in nearly four years
Petrol prices have dipped to their lowest level in nearly four years, new figures show.
The average cost of petrol at UK forecourts is £1.09 per litre, according to Government data.
It has not been that cheap since May 2016.
Some retailers are pricing their petrol at less than £1 per litre.
Filling up a 55-litre family car is around £10 cheaper today than in late January.
Diesel costs an average of £1.16p per litre, which is the lowest level since July 2017.
The number of motorists taking advantage of cheaper fuel is limited however, as the Government has ordered people to only go outside for food, health reasons or to commute if they cannot work from home.
Department for Transport figures show that road traffic is around two-thirds lower than normal.
The drop in fuel prices is due to the price of oil falling off a cliff since the beginning of the year, with Brent crude, the international standard, briefly dropping below 25 US dollars per barrel two weeks ago.
Analysts had put the fall – from around 64 dollars at the start of January – down to the double pressure from a production dispute between Saudi Arabia and Russia, and falling demand due to the coronavirus pandemic.
When Russia, the Saudis and other allies eventually agreed to the biggest production cuts in history last week, oil rose again.
But this week demand has dominated the narrative. Brent dropped a further 5% to 28.27 dollars on Wednesday after the International Energy Agency warned producers to expect the lowest global oil demand in 25 years this month.