Warning as fuel prices fall again

PETROL prices have dipped to their lowest level since The Evening Star's fuel watch campaign began.

PETROL prices have dipped to their lowest level since The Evening Star's fuel watch campaign began.

As a result of prices tumbling for crude oil to less than 70 dollars a barrel amid fears of a global recession, the cost at UK forecourts is continuing to drop with supermarket giants Asda, Tesco and Sainsburys all announcing a new round of cuts yesterday.

The lowest price in the area is now Asda at Whitehouse on 94.9p per litre as well as the Sainsbury's stores in Hadleigh Road and Warren Heath, also offering petrol for 94.9p as well as a 5p per litre discount for anyone spending £50 or more instore.

Motoring body the Automobile Association (AA) welcomed the latest price cuts, but warned that moves by oil cartels to slash production meant that the recent easing in petrol price could be brought to an end.

Oil cartel Opec is expected to agree a production cut at a meeting today in a move that could halt the recent slide in UK petrol prices.

Members of the organisation are gathering in Vienna to discuss restricting supplies in order to drive up the cost of oil.

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AA president, Edmund King, said: "With Opec looking to halt the fall in oil prices, the outlook in coming weeks was looking more gloomy.

"This latest cut in supermarket fuel prices has come at just the right time and cuts the cost of a tank of petrol by £12.50 compared to the record prices in mid-July."

Today's meeting of the cartel has been brought forward by three weeks, reflecting the 12-nation group's concern at the slumping price.

The oil minister of member Iran called on fellow members to cut by two million barrels a day to stop the slide.

Venezuela has also called for quick action to shore up falling prices.

But other Opec members appear to be more cautious. Oil ministers from Kuwait and Algeria said a production of any size should be done in a way that doesn't bring more turmoil to already fragile global economies.