Lower oil prices filtering through to pumps

Fuel has started to become cheaper, as retailers begin to pass lower crude oil prices on to the consumer.

Since 11 July, when it touched $147.27, the price for a barrel of crude has dropped to around $124. Industry analysts attribute the falling price to increased stability in some oil-producing nations, and expectations of a continued economic slowdown - which would reduce the energy demands of manufacturing economies such as China's.

According to BBC News, the AA has recorded a 6% fall in the wholesale cost of petrol since mid-July. Earlier this week, major petrol retailers said that they were reducing their pump prices. Asda, Morrisons and Tesco all announced cuts of up to 4p per litre, while Sainsbury's also said that it would lower prices.

The reductions are likely to ease the cost of business travel, but crude oil remains almost two-thirds more expensive than at this time last year. According to Petrolprices.com, the average price for a litre of unleaded petrol stood yesterday at 118.3p, compared to 132.1p for diesel.