Petrol below £1 per litre

20 October 2008

Yesterday saw the price of petrol drop below £1 per litre in some supermarket forecourts.

As The Times reports, this marks the first time we’ve seen petrol available for less than a pound per litre since last December.

Asda, says The Times, ‘triggered a new pump price war by reducing prices by 5p a litre to 99.9p’ – while Morrisons ‘followed suit immediately, taking petrol down by as much as 7p to 99.9p’ and BP ‘pledged to match the prices at some sites’.

However, the price cuts weren’t quite as significant as some may have expected. The price of crude temporarily dropped to $70.50 per barrel yesterday, down from over $147 in July; the last time prices stood at $70, forecourt prices per litre were nearly 5p lower.

“This is clearly good news,” said a spokesperson for debt management company Gregory Pennington. “Not just for motorists, but for everyone struggling with a high cost of living that’s pushing many people into debt.

“Inflation may stand at 5.2% today, but economists have said they expect it to drop – and one of the reasons for that prediction is that petrol prices were expected to come down. So these price drops could be seen as proof that inflation has indeed peaked.”

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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Gregory Pennington are founder members of DEMSA (Debt Managers Standards Association).

DEMSA are the first trade body within the finance industry to successfully secure approval for its code of practice under the OFT Consumer Codes Approval Scheme (CCAS).