Latest News
Petrol prices could hit £8 a gallon by the end of the year, a leading investment bank has predicted. Oil prices are currently hovering at around $120 a barrel, but "the possibility of $150-$200 per barrel seems increasingly likely over the next six to 24 months," said Arjun Murti, a strategist at Goldman Sachs.
The oil price was just $100 a barrel at the beginning of the year, so this would represent a doubling of the price within 12 months. The forecast increase would equate to more than £8 per gallon at the pump for UK motorists, nearly £9 for diesel, and probably trigger repeats of the fuel protests that dogged the government in 2000.
Murti attributes the oil price 'spike' to the inability of oil suppliers to meet the increased demand from developing countries. To put the current price in perspective, the price of a barrel of oil at the time of the 9/11 attacks in the US in 2001 was just $20.
Your Say
Comments: 20 Join the discussion
News archive
Today's hottest stories
Join the debate
Our Say
Autocar's team blogs.
Your Say
Join the debate in our forums.