Fuel prices are tipped to tumble next year due to global oil oversupply – after drivers were already treated to falls of 2.4p a litre for petrol and 4.5p for diesel last month
Drivers can expect to pay less at the fuel pumps in the coming year as experts predict oil prices could fall to £47 a barrel.
The International Energy Agency has pointed to a global oversupply of oil by 2030, leading analysts to predict a sharp drop in costs.
Not only will this make it cheaper to fill up at the pump, but Brits could also go on holiday at lower prices as the cost of jet fuel falls.
Last month, drivers were already treated cheaper petrol as the average cost of unleaded petrol fell by 2.4p, saving drivers an average of £1.30 per tank.
According to Fuel Watch, average diesel prices fell by 4.5 cents, from 158.06 cents to 153.59 cents per litre.
Drivers could pay less at the fuel pumps in the coming year as experts predict oil prices could fall to £47 a barrel (Stock Image)
According to Fuel Watch, average diesel prices have fallen by 4.5 cents, from 158.06 cents to 153.59 cents per liter (Stock Image)
Fuel Watch, the Royal Automobile’s (RAC) petrol and diesel price monitoring initiative, has said fuel prices in the UK should ‘fall further’.
While expected fuel prices will delight motorists, fossil fuel producers may face greater pressure as they already suffer from high taxes.
Yesterday Sir Keir Starmer announced plans to increase the windfall tax on oil and gas by a year until 2029, when he walks into 10 Downing Street after the general election.
The Labor manifesto sets out that this tactic will raise £8.3 billion in taxes to fund their Great British Energy project to ‘give power back to the British people’.
The plan has been praised by green groups, although a climate protester heckled Starmer during his speech in Manchester yesterday.
But industry experts warned the UK could become ‘colder and poorer’ as oil and gas operators in the North Sea face both falling prices and higher taxes.
Chris Wheaton, an analyst at Stifel, told us The Telegraph that Labour’s tax plans would ‘kill the North Sea’.
Yesterday Sir Keir Starmer (pictured) announced plans to extend the windfall tax on oil and gas by a year until 2029
The party leader speaks at the launch of the Labor manifesto in Manchester
A member of the public reads Labour’s manifesto as it is launched at Co-op headquarters
A protester heckles Sir Keir Starmer during his speech
He said: ‘There will be very little new investment and that means UK oil and gas production will decline very quickly – much faster than demand.
‘The UK will become increasingly dependent on other countries for its energy.’
But Labour’s shadow energy secretary Ed Miliband said: ‘Labour is offering the country the most ambitious climate and energy plan in British history – investing in our country through Great British Energy so we can cut energy bills for good, secure our country’s energy supply couples, good jobs and protect our homes for our children and grandchildren by tackling the climate crisis.”
