A MAJOR international battle is going on to stop petrol prices soaring.
A dramatic fall in the price of oil has seen petrol prices tumbling in recent weeks by around 35p a gallon about 10 per cent.
But OPEC the Organisation of Petroleum Exporting Countries would like the price of oil to rise again.
Now the world's leading oil producers are taking part in a massive game of bluff. It could lead to a price war with the price of petrol going into free-fall in the first weeks of 2002.
The price of a barrel of oil has tumbled in the last two months, some say by as much as half. It's now down to around 18 dollars a barrel.
The generally accepted guideline says every dollar off the price should bring down petrol prices to the motorist by 3p a gallon.
Prices in Britain have fallen by about 8p a litre about 36p a gallon in the last four weeks, says the Petrol Retailers Assoc-iation.
Spokeswoman Sue Robinson told us that the last month had seen prices fall from 77p a litre to 69p. "But I don't think they'll go much lower," she said.
The main reason is a complicated web of in-fighting between America, Russia and the Middle East.
Saudi Arabia would like the price of oil to rise preferably to around 23 dollars a barrel, which keeps their economy happy.
But OPEC won't put up its prices unless Russia, the third biggest oil producer, does the same.
Russia, however, is trying to build a new relationship with America and sees low oil prices as a major way to keep the US happy.
Cheaper petrol is often regarded as the best thing that can happen to the economy, and Britain is also benefitting from Russia's political game.
Lower petrol prices keep goods moving around Britain at a lower cost, meaning a more efficient economy, and that keeps inflation down.
Low costs help the employment figures, by helping companies to avoid laying off workers.
Rising prices make it difficult for the Bank of England to cut interest rates, so everyone loses out.
Opec may have the last word on what happens to petrol prices, with a decision expected early in the New Year.
If Russia doesn't increase its prices, Opec is threatening to slash prices even further, causing a price crash which would hurt Russia's economy.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article