Oil Price Slide Not Matched At Petrol Pump

Motoring groups have complained falling crude oil prices have not been mirrored on the petrol station forecourt.

This comes as Brent crude nears a five-year low.

Although a barrel of oil currently costs just $68 - down around 40% since mid-June - petrol is down just 6% on the same time last year, according to Government figures.

Duty and excise charges make up the majority of the price motorists pay, but the forecourt price fall is still only about half expected when currency fluctuations are taken into account.

The RAC motoring group said that figure should fall by well over 4p a litre in the next few weeks.

If that occurs, taking fuel below the 120p-a-litre mark, it will be the first time the barrier has been breached since December 2010.

Meanwhile, rival group the AA has pointed out that petrol sales have fallen 20% compared with the same period five years ago.

As such, Treasury receipts from fuel are also under pressure.

This comes as fears are raised of falling Government revenue, despite lower unemployment numbers, increase pressure on the Chancellor to toughen austerity cuts.

The AA cites high fuel prices as the reason behind falling sales volumes.

"Price spikes and high fuel duty levels have forced drivers to cut back on car use for so long that the habit has stuck," group president Edmund King said.

More energy efficient vehicles are also seen as a driving force behind reduced fuel sales.

Petrol sales were up slightly in October compared with September 2014.

However October 2014 sales, when petrol averaged 124.55p a litre, were almost 1.48 billion litres.

That figure was down from the nearly 1.49 billion litres bought in October 2013 when average prices were more than 133p a litre.

Meanwhile diesel consumption has risen - going up 2.2% in October 2014 - and up 11% in the first 10 months of this year compared with the same in 2009.

Crude is now predicted to continue sliding in price as the oil cartel refused to cut production last week.

Amid Western sanctions and falling prices the Russian rouble fell 4% on Monday, following a decline of 15% last week.

Both Russian producers and American shale oil producers are seen as key targets of some OPEC members, who are trying to increase market share.

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