Low Petrol Prices benefit local transport providers

Low Petrol Prices benefit local transport providers

Petrol prices could stay lower for longer after major oil producing nations failed to reach a deal to cut output, experts have said.

The oil price has tumbled nearly 5% to 41 US dollars a barrel following the summit in Qatar at the weekend, which saw talks break down  after Iran continued to step up output despite Saudi Arabia agreeing to cut production.

It means consumers can enjoy cheaper petrol in the short term, as falling oil prices keep a lid on the cost of filling up at the pumps, according to analysts.

The fallout of the crunch meeting in Doha comes after figures from the Office for National Statistics showed the average price of petrol rose by 0.9% between February and March to hit 102.3p per litre.

The oil price has fallen close to 70% since its peak in the summer of 2014. 

Ali Bell, head of external communications for National Express, pointed out the benefits this may have for transport providers within the West Midlands:  “Fuel makes up a fairly small percentage of National Express West Midlands' costs. 

“Like many companies, National Express buys its fuel a long time in advance. 

“This enables us to plan ahead, smooth out costs and not be affected by every price fluctuation at the pumps.”