With the potential overthrow of Colonel Gaddafi in Libya, motorists in the United Kingdom are very excited at the possibility that fuel prices will come down from the recent highs.
If the news in The Sun this morning is true then petrol station forecourts around the country could see scenes of joy and jubilation. The possibility that conflict in Libya could end, will see an almost immediate four pence price cut in the cost of petrol.
Downfall of tyrant Colonel Gaddafi
The Sun had written: “The downfall of tyrant Colonel Gaddafi will bring joy to motorists by slashing more than 4 PENCE off petrol prices, the AA said last night.”
The mystery now lies in why the motoring group are directly relating the removal of the middle-east dictator and the price of crude oil. An AA spokesman has stated that before the crisis in Libya began petrol prices where under 130p per litre.
Therefore, using that reasoning the prices should be heading southward once more if events in Libya were to come true. But to cover their backs the AA spokesman has said: “Given, how strangely the commodity markets have been behaving, we’re not holding our breath just yet.”
Factors driving oil prices are not that clean cut
The reality is the AA are not for one minute actually thinking that this is what drivers will be getting in terms of petrol prices because it would just be too simple for the situation to play out this way.
The AA were contacted by Full Fact and what was discovered is that the oil markets are so complex that any drop in oil price which is related to the stability in Libya should not be taken as 100% certain.
The reality is the factors driving oil prices are not as clean cut as the AA are letting on, and they were never quoted as saying the reduction will be on the cards in the future.