16/10/2008 - Petrol prices finally falling

Several supermarkets have lowered their price of petrol to below £1 per litre.

This is on the back of oil prices falling to below $70 per barrel, less than half its price earlier this year.

This reduced fuel cost in expected to contribute towards rapidly falling inflation in the coming months. Inflation reached a 16 year high of 5.2% in September.

The falling cost of oil and gas has also had an impact on the futures prices for electricity which have started to fall a little.

The lower cost of oil has also had an impact on the fuel surcharges imposed by airlines - both BA and Virgin Atlantic have reduced their fuel surchanges on long-haul economy and premium economy flights.

Source: Financial Times & Daily Telegraph

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