Petrol prices could fall by as much as 8p per litre in the coming months, according to an economic thinktank. The Centre for Economics and Business Research (CEBR) has made the prediction based on crude oil price forecasts.
CEBR economists believe that the price of crude oil — currently at $107 per barrel — will fall to below $90 per barrel by 2024. They also expect demand for the fossil fuel to fall, and the American government to lean on Middle Eastern nations to boost production.
That move from the US State Department could see an extra 1.5 million barrels a day added to the production system, which will contribute to a fall in the cost for crude oil.
A drop in the cost of production will come as a double-boost for motorists, after Rishi Sunak announced a 5p cut in fuel duty recently. FairFuel, a lobbying group, welcomed the news.
“At last some light at the end of the tunnel for motorists and hauliers,” founder Howard Cox said. “These predicted levels of price falls in diesel and petrol at the pumps by the CEBR will make a huge difference to drivers and the economy.
“Backed up by the 5p cut in duty too, an 8p decrease will ease inflationary pressure. But before we all get excited, [it remains to be seen if the] CEBR’s welcome prediction [will be passed on in full at the pumps, and not swallowed up in the inevitable fuel supply chain cash grab, keeping their profits high.”
Diesel prices are not set to see the same fall, the CEBR added.
