Boost as price of petrol hits three-year low

 
Suzie Neuwirth
THE AVERAGE price of unleaded petrol in the UK has fallen below 130p per litre for the first time in three years and is likely to drop further in the coming weeks.

Data from analysis firm Experian Catalist showed the average price fell to 129.82p on Sunday, in a boost for motorists and the Bank of England.

“Three years ago, petrol was on an upward climb,” said Arthur Renshaw, petrol analyst at Experian Catalist.“Now it has fallen below 130p per litre and I think it will edge down marginally more over the next couple of weeks.”

The Arab Spring in 2010 choked oil production in parts of the region. But the development of shale in the US and increased output in Libya are causing supply to soar, putting downwards pressure on prices.

The oil price closed 0.7 per cent lower at $93.72.