A $12 decrease in the price of Brent crude typically reduces petrol prices by 5 per cent. Oil prices have come down from about $60 a barrel in JanuaryThe sharp fall in the oil price has delivered another shock to a global economy that is already reeling from the coronavirus outbreak. Cheaper oil will translate into lower petrol prices. A collapse in the oil price could encourage spending and act as an economic stimulus. According to the International Monetary Fund inflation in advanced economies rises by about 0.4 percentage points for every 10 per cent increase in oil prices.

Source: The Times March 09, 2020 17:07 UTC