THE plummeting price of fuel may be making our money go further, but it is also boosting profits for some petrol stations as demand soars.

The benchmark price for crude oil has fallen below 50 dollars a barrel – the lowest price since April 2009.

The price has tumbled by more than half since June, when it stood at 110 dollars per barrel.

Production from North American shale companies has increased the supply of oil and gas, helping to depress prices.

Also undermining the price of oil are slowing global economic demand and a rising dollar against a range of other currencies.

The drop in prices on the forecourt has proved a bonus both for drivers and petrol stations across south Essex.

The Park Garage Group, which has sites in Essex, Kent and London, has reported profit increases of 12 to 15 per cent on the corresponding period last year.

Its Southchurch Road garage, in Southend, has been selling a litre of petrol for 106.9p and diesel for 113.9p, thanks to a cut-price deal on two days of the week.

But Visvanathan Bahsundaram, a price analyst for the company, said the low prices were fuelling demand.

He said: “We are averaging an increase in profit of 12 to 15 per cent compared to this period last year because more people are coming to buy the fuel as a result of its affordability.

“It also looks like prices are going to continue to go down.

We’ve just had a debate in the office about a prediction we had seen, which said by the middle of March unleaded would be at 89.9p per litre.”

Kanna Ratnasindhan, at the BP garage at Bournes Green, which was selling petrol for 108.9p per litre and diesel for 116.9p yesterday, said the station’s franchise was experiencing a similar profits lift.

He said: “It’s been good for us because we’ve been able to increase our margins, though it is difficult for us to compete with supermarkets like Asda, because they are able to loss-lead on their fuel.”

Both Asda and Morrisons have just knocked 2p off their fuel prices, with Asda’s fifth reduction since September bringing prices down to 103.7p for a litre of petrol and 110.7p for diesel.

One service station in Birmingham has slashed the price of petrol to as low as 99.7p per litre – adding credibility to the RAC’s forecast that average prices will soon dip below the £1- a-litre mark.

However, the AA is more sceptical and has branded the ultra-low prices on some forecourts as a “publicity stunt”.

AA president Edmund King said: “There remains a postcode lottery out there when it comes to fuel prices.

“Drivers in rural areas are still paying much more than the 109p average petrol price and in some places 118p.

“It will still take some time to get down to an average of £1 per litre, particularly as 70 per cent of the pump price is tax.”