New surge in petrol prices predicted
Posted by Admininstrator on Wednesday, 24 Sep 2008, 16:30 in UK Motoring
Within days of industry experts insisting that petrol costs will stabilise in the near future, drivers are being told to prepare for another surge in gas pump prices.
The warning follows a dramatic spike in the cost of oil, which confirmed its reputation for volatility by leaping $25 in a single day on Monday (September 22nd), reaching $130 per barrel.
The upswing was put down to a newly launched rescue plan by the US government which aims to help global financial markets root out the bad credit that has paralysed stock exchanges.
And while yesterday''s prices had already sunk back down to $110, experts caution that oil companies are unlikely to pass on falls due to fears that another unexpected spike will occur.
Nonetheless, as Ray Holloway of the Petrol Retailers'' Association explained, the medium-term outlook still remains favourable.
"The chances are that the oil price hike of the last few days is a blip and that things will settle down," he told the Daily Mail. "But there is no denying that prices at the pumps will start to rise again toward the end of October."
