Petrol prices are falling fast. Supermarkets are leading the downward charge, with Asda slashing the prices of petrol and diesel by 12p a litre, and Morrisson’s knocking off 8p. Other forecourts aren’t far behind - have a look at the petrol stations in your local area, and you’ll find prices around 102 to 103p per litre to be common.
Yep, close to the mythical £1 per litre mark, which hasn’t been seen since a very brief spell in 2016. Costco fuel stations are already selling petrol for 99.9p a litre at the time of writing (for people with a membership card), and other companies may well follow suit.
It’s the same story on the other side of the pond, with the average price per gallon of gas dropping to $1.99 at the end of March, the first time it’s dipped below the $2 mark in four years.
All of this all down to a crash in the price of crude oil. In March, talks between Saudi Arabia and Russia to decrease production - to account for the drop in demand amidst the Coronavirus pandemic - faltered, which the former nation responded to by upping its output.
The price of a barrel of oil quickly halved and fell as low as $25, the lowest it’s been since 2002. Currently, it sits at $33.70, with the mere talk of Opec (of which Saudi Arabia is a member) curbing production pushing prices back up again.
Cheap-ish fuel might not last for long, in other words, and with all but essential journeys currently banned in the UK to restrict the spread of Covid-19, most of us won’t be able to benefit all that much while prices are down.