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.


Visits to China, India, Malaysia and Pakistan are significant because the trip spells out the Saudi Kingdom's Look East policy, representing a new reorientation in its foreign policy that was heavily tilted toward the West.

The worst two scenarios suggest a drastic decline in output to 875,000 barrels a day by the end of 2007 and to just 520,000 a day by the end of 2008.

Bush said he envisioned a future in which a plug-in hybrid car could drive 40 miles on a lithium-ion battery, then stop at a filling station for ethanol, a fuel usually made from corn, similar to HyMotion Prius pictured below.


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