Motorists told oil price may actually decrease

Motorists worried that war in Iraq will drive petrol prices higher have instead been told to expect a cut in April.

Oil prices have been fluctuating wildly in recent days with any conflict in Iraq widely expected to lead to higher prices.

But according to petrol retailers, the threat of invasion is no longer forcing up prices at the pumps. It is the potential duration of the conflict which is continuing to influence volatile oil prices.

Today the price of Brent crude, the industry benchmark, slipped to 27.39 dollars before climbing back to 27.64 dollars, a 40 cent gain.

When Iraq invaded Kuwait in August 1990, petrol soared 4p a litre in just two months, but subsequently dropped 6p in the following three.

In Britain the Petrol Retailers Association (PRA) is optimistic that the same trend will emerge this time.