Economists are predicting that petrol prices in Essex and the rest of England could soon fall sharply by 8p a litre. The news comes after the entire county’s drivers have been facing extremely high prices at the pumps for their fuel.
The experts at the Centre for Economics and Business Research (CEBR) are predicting petrol prices could fall pretty quickly in the coming months, though not to where they were for much of 2021. If the fall in the spot market that CEBR are predicting takes place, the price of petrol will fall by 8p a litre.
They expect demand for oil to fall as a result of both the direct impact of higher prices and also the impact of weaker gross national product (GDP) growth. They forecast that the US State Department can pressure Middle East producers to increase supply by around 1.5 million barrels per day.
The economists believe it’s hard to see the current price of oil being sustained for long, given all the factors at play that should bring it down. The forward market for oil is predicting Brent crude below $90 in 2024 against the March 31 spot price of $107.60; much of that fall in the cost of oil is forecast by December 2022.
Howard Cox, founder of FairFuelUK, said: “At last some light at the end of the tunnel for motorists and hauliers. These predicted level 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, will CEBR’s welcome prediction be passed on in full at the pumps, and not swallowed up in the inevitable fuel supply chain cash grab, keeping their profits high?”