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RAC comments on suggestion that oil could fall to $10 a barrel

News   •   Jan 12, 2016 17:45 GMT

RAC fuel spokesman Simon Williams said: “This latest prediction of oil hitting just $10 a barrel would have the potential to take petrol prices down to around 86p per litre – the last time we saw average prices this low was in early 2009. However, for prices to get this low the pound would have to get no weaker against the dollar than it is today.

“As global oil prices continue to slide, they expose just how much British motorists are paying purely in tax at the pumps. It is worth remembering that even if oil was almost given away, motorists would still be paying fuel duty and VAT. At $10 a barrel, tax would account for around 84% of the total price per litre – a clear indication of just how high a proportion of every litre we buy goes straight to the Treasury.”