Petrol predicted to drop to £1 a litre following price war
PUBLISHED: 12:11 09 March 2020 | UPDATED: 16:27 09 March 2020
Petrol prices are set to tumble after the coronavirus outbreak saw the price of oil slashed to its lowest in 30 years.
Petrol prices are set to tumble after the price of oil was slashed to its lowest in 30 years.
Over the past few weeks petrol prices have slowly dropped, but price comparison site PetrolPrice.com has predicted it will fall even further.
A spokesman for the site said: "We can confirm that retail fuel prices are sure to drop close to the £1 a litre mark, and possibly below, for the first time since 2012.
MORE: 'Black Monday': East Anglian firms lose out in stock market crash over coronavirus fears "However, the chancellor will probably raise fuel duty in the budget on Wednesday by 2p, so this could not have come at a better time."
The drop in price was driven by an announcement from Saudi Arabia that it was launching a trade war with Russia.
The Gulf kingdom, which is one of the world's largest producers, slashed the price of its oil after it could not win Russia round to production cuts, designed to prop up prices.
Overnight a barrel of Brent Crude oil fell 30%, its lowest price since the first Gulf War.
Markets are already under strain due to the outbreak of the coronavirus putting off investors.
Already stations in Norwich have seen their prices for unleaded petrol fall.
Sainsbury's petrol station in Hall Road has seen it's price for unleaded petrol fall from its average price of around 120p per litre to as little as 116p.
A spokesman for the station said: "We have seen it drop by a couple of pence over the past week or so.
"We're given pricing updates from head office each evening, so the impact of the news this morning won't be seen until tomorrow."
However Sally Nicholson, manager of Nicholsons Petrol Station at Stalham Engineering, said it was "too difficult to predict". She said: "We always try to predict these things but the situation rarely meets the prediction. We have seen prices fall over the past couple of weeks, and I think they will continue to. At this stage no one knows how low the prices will go."