Decades of Cheap Petrol Are Over, Experts Warn

Oil demand is presently at a 25-year high and supply is struggling to keep up. The Paris-based International Energy Agency predicts demand will rise to 86.1m bpd later this year from about 83m in the first half of the year.

Published: 19-Mar-2005

Motorists are facing further petrol price rises after crude oil hit a record high this week with experts and oil-producing countries warning that a decade-long period of cheap energy is now over.

With pump prices already at an average of 82.5p a litre for unleaded and 87.1p for diesel, the latest surge in crude, which has reached more than $57 a barrel, is likely to push petrol up over the coming days, experts say.

Ray Holloway, of the Petrol Retailers' Association, dismissed speculation that petrol would hit £1 a litre as "scaremongering" but said prices were likely to rise further in the second quarter of the year ahead of the summer driving season, when demand peaks.

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