But now oil prices are soaring again which is likely to lead to even more inflated prices at the pumps. The cost of oil reached $130 at one point, before settling at $120.
Ray Holloway, director of the Petrol Retailers Association, said fuel prices are expected to rise in November as a result. He said: ‘Don’t panic yet. Often with a spike like this, the price dips back again within a day or two. It will be a few days before we know if there is going to be a knock-on effect at the pumps.’
He added that the spike in oil prices was down to three things: a pledge by the Saudis to cut oil production by half a million barrels a day, a surge of speculators buying into the oil market, and a weak dollar.