Cost of petrol expected to soar

 

The price of petrol is expected to rise by an estimated 0.45%, and could even reach an all-time record as prices will become the highest seen in over two and a half years, with further increases possible as the demand for oil soars.

Recent disruption in the Middle East and north Africa have caused international oil prices to move beyond $100 a barrel, and emerging market economies, like China, have also led to an increase in the demand for oil, whilst there has been a decline in supply.

An adviser to the IMF's Research Department commented "there is a risk that the tensions between demand and supply trends could intensify again and prices could rise rapidly".

The IMF has warned that if the situation escalates it could force increases as high as those seen in 2008 when oil prices reached record levels of $148 a barrel.

"The increases in the trend component of oil prices suggest that the global oil market has entered a period of increased scarcity," the IMF stated in their World Economic Outlook report, which is due for release early next week.