Petrol may hit £1.50 a litre, warns expert
Wednesday 23rd February 2011, 11:30AM GMT.
Petrol prices could soar to £1.50 a litre by Christmas, a markets expert from the Black Country warned today.
Unrest in the Middle East is pushing up the price of oil, increasing prices up at forecourts in this country.
The prediction of £1.50 a litre equates to well over £6.50 a gallon — and would be an increase at the pumps of around 40 per cent in 18 months. Unleaded petrol prices in the West Midlands today stand between £1.25 and £1.32 a litre. The cheapest diesel is £1.30 and the most expensive £1.37.
Richard Mottram, of Wolverhampton stockbrokers Redmayne Bentley, said: “The unrest in North Africa and the Arab world has already resulted in oil prices rising — the price of Brent crude has topped $106 a barrel this week.
“Oil is now at its highest level since September 2008. Oil at $105 a barrel was expected to add 4.5p a gallon to petrol prices, or just over 1p per litre.
“But it has already broken through this level, and the next stop may be $110 per barrel, which would add roughly 9p per gallon or 2p per litre.
“Prices could quickly rise to 135p on oil above $110 a barrel,” said Richard.
“One expert is predicting $150 a barrel by the year end, with petrol closer to 145p-150p per litre, if things escalate.”
What happens next to fuel prices depends on a number of factors, he said.
“Analysts point to the fact that oil prices were on the up even before the turmoil. Any threat to oil production could, therefore, lead to a further spike in prices.
“We believe a potentially bigger problem that would seriously affect the oil price lies in the fortune of Bahrain. Bahrain sits at the mouth of the Straits of Hormuz, through which millions of barrels of oil a year are shipped out on supertankers.
“Strategically, Bahrain is hugely important. It is also where the American Navy has its largest fleet in the area.
“If the US is forced to leave Bahrain then it is almost certain that Iran will look to exert more influence over the kingdom.
“The thought of Iran controlling the flow of oil through the Straits of Hormuz would, in our opinion, result in a surge in prices way above current levels.”
Most Commented
Business Awards
Book a Business Awards table
Join our celebrations of the region's best in business on Thursday March 22 - book your table now
Lifestyle
Interactive Dining Out map
Hundreds of reviews by the Express & Star and Shropshire Star's teams to help you decide where to eat.
entertainment
All the film reviews
Before you plan a trip to the pictures, get our critics' verdicts on all the latest movie releases
OUR NEW APP
Get the new E&S app
Download the Express & Star’s new app to your iPad or iPhone to get one week of access to our digital newspapers absolutely FREE.
expressandstar.com
Popular sections
Useful links
Oil bosses must think we are mugs. They are blatantly rising the price of oil to secure maximum profits – knowing full well alternative transport is lower on peoples wish list.
The price was slowy and deliberately put above 100pence a while back so we would get used to it – now when we have any drop it seems like we are getting something back. Remember 18 mths ago when it went down to 85p per litre and eveyone was chuffed?
The government need to abolish fuel duty and VAT immediately. Both of these taxes are unfair anyway. This accounts for 63% of what we pay out. When people have more money in the sky rocket as a result it will be invested in the economy anyway
Report abuse
Makes you wonder why its always cheaper in Europe and America. Always an excuse in this country for constant increases. They know they can keep pushing us into paying that little bit more and we all pay it. It won’t stop untill we get to a point when we can’t afford it anymore. Government tax accounts for most of the cost at the forecourts.
Report abuse
There are people out there that cannot afford it now!
Report abuse
We need some Egypt style protests to show the government it is we – the people whom have the power, no more bending over and taking it up the rear!
Report abuse
As normal though in this country the people are not happy but they dont express their unhappiness to the authority that be. Instead we take it and moan.
Report abuse
Things will not change unless people come together and start taking direct action against the Government and the oil companies. A boycott of BP, Shell or Esso for example would result in one of these companies exerting enormous pressure on the Government into reducing fuel duty. The Government will only listen to big business as it constantly ignores the people of this country time and time again.
Report abuse
We shouldnt use BP and Shell, go and fill your car up at Supermarkets. they will have to listen then.
When this happened in America years ago the people didnt have any of it and didnt go to work then the prices dropped.
In this country we moan and groan saying this is unfair blah blah blah but do nothing about it.
It just wouldnt be British to stand up for your rights. instead we bend over and get pumped
Report abuse
If you boycott BP, Shell and Esso, where are you going to get your petrol? Sainsburys? Well that’s Shell. Tesco? That’s Esso AFAIK. Asda or Morrisons? BP I believe.
Report abuse
Your boycott the oil company and the supermarket that takes thier fue. Simples!!
Report abuse
If the petrol companies keep this up people who do have jobs won’t be able to afford to go to work. i’m sure if the problems in the middle east had’nt happened they would have found another excuse to raise the price as they are all just plain greedy. how’s the economy supposed to grow when everyone is constantly being squeezed by the rising cost of everything? good old ripoff britain
Report abuse
Don’t forget, the government is set to put up fuel duty by five pence in the budget. What will the price at the pump look like then?
Report abuse
Nevermind next summer, with oil at $110 a barrel we could see £1.50 a litre at the pumps by the end of March.
£1 of which will be tax!
Maybe people will stop driving like morons?
Nah, doubt it.
Report abuse
This is what the whole Middle East issue is about – oil. It’s not about people fighting for their freedoms, it’s about controlling the economies of countries that are ready to dump the dollar. If you think the protests in Egypt are only going to be in Egypt then I think you are mistaken, especially when our economies crash and our money becomes worthless.
Report abuse
its still cheaper than a litre of a well known soft drink….
Plus its a finite supply, so when it becomes scarce it will become even more expensive – just get used to a future with no fuel or VERY expensive fuel.
Report abuse
Or alternative fuels which do not harm the environment!
Report abuse