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- May 10, 2012
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[h=1]Petrol could fall to £1.05 a litre if oil prices remain low: Experts say recent slump could be 'significant stimulus' to the economy[/h]
Petrol prices will drop to just over £1 a litre if oil prices remain low, an economist has predicted
Petrol prices will drop to just over £1 a litre if oil prices remain low, a leading economist predicted yesterday.
Kevin Daly, senior economist at Goldman Sachs, described the recent slump in oil prices as a significant stimulus to the economy which would benefit families around the country.
Giving evidence to the Treasury Select Committee, Mr Daly predicted the price of unleaded petrol could fall another 15p to between £1.05 and £1.10 a litre.
Unleaded petrol prices fell to an average of 122.9p a litre last month and have dropped closer to 120p a litre since then, according to the AA.
With wages stagnant, Mr Daly told the Treasury Committee that the men and women of Britain will really notice things such as the sharp decline in oil prices.
The value of Brent crude has tumbled 40pc since the June high of $115 a barrel as production in the US has surged while demand from faltering economies in the eurozone and China has fallen.
Oil prices have dropped to a five year low of just under $66 a barrel this week and rose to $66.4 yesterday.
Although retailers have cut their prices, they have been criticised for not passing on the drop in their wholesale costs to motorists.
Mr Daly said: If prices remain at these levels, were likely to see a litre of unleaded petrol fall to between £1.05 and £1.10 a litre.
- A leading economist has predicted prices will drop if oil prices remain low
- Recent slump in oil prices could be 'significant stimulus' to the economy
- Unleaded petrol fell to 122.9p a litre last month and is set to drop again
Petrol prices will drop to just over £1 a litre if oil prices remain low, an economist has predicted
Petrol prices will drop to just over £1 a litre if oil prices remain low, a leading economist predicted yesterday.
Kevin Daly, senior economist at Goldman Sachs, described the recent slump in oil prices as a significant stimulus to the economy which would benefit families around the country.
Giving evidence to the Treasury Select Committee, Mr Daly predicted the price of unleaded petrol could fall another 15p to between £1.05 and £1.10 a litre.
Unleaded petrol prices fell to an average of 122.9p a litre last month and have dropped closer to 120p a litre since then, according to the AA.
With wages stagnant, Mr Daly told the Treasury Committee that the men and women of Britain will really notice things such as the sharp decline in oil prices.
The value of Brent crude has tumbled 40pc since the June high of $115 a barrel as production in the US has surged while demand from faltering economies in the eurozone and China has fallen.
Oil prices have dropped to a five year low of just under $66 a barrel this week and rose to $66.4 yesterday.
Although retailers have cut their prices, they have been criticised for not passing on the drop in their wholesale costs to motorists.
Mr Daly said: If prices remain at these levels, were likely to see a litre of unleaded petrol fall to between £1.05 and £1.10 a litre.