Tripoli - Arabstoday
THE victory for the rebels in Libya could see fuel prices tumble by as much as 6p per litre, say experts. Oil production in the troubled state is expected to return slowly to normal after the killing of Colonel Gaddafi on Thursday ended months of bloodshed. The AA said that when Libya resumes its normal output of 1.5 million barrels a day, the cost of Brent Crude which marks the price of fuel used in British petrol tanks could fall by as much as 10 dollars. That will mean a reduction of 5p per litre, plus a further penny from the 20 per cent VAT saved on that amount, in the pockets of the country’s cash-strapped motorists. But car owners were warned not to expect to see changes at the pumps overnight. “We hope this will have a knock-on effect at the pumps and finally give some respite to Britain’s motorists,” said the AA’s Luke Bosdet. “It won’t happen overnight because Libya will take some time to recover from the conflict but we certainly hope to see some effect in the next few weeks. “It’s crucial that the fuel companies pass that on because there are businesses going to the wall every day because of high prices.” Mr Bosdet said the weak pound and continued uncertainty over a bailout for European banks had also contributed to higher fuel prices in the last 12 months but were not likely to change. Libya is one of the biggest oil producers in the world and responsible for 10 per cent of global output. After it was engulfed by civil war in March, production dropped to just 44,000 barrels a day.