'Unleaded will be £2 a litre by 2009'

Sunday, June 11, 2006

Oil boss predicts oil prices will double
Fuel prices will soar as a result
Other predictions less severe

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A litre of unleaded fuel will hit £2, according to the chief executive of the world's largest energy company.

The stark warning was delivered by Alexei Miller, the chief executive of Russia's Gazprom, the supplier of a quarter of Europe's natural gas.

'The price of oil is going to reach a level never seen before,' he said. 'We think it will reach $250 a barrel,' said Miller, who predicted the price would hit that level in 2009.

His comments came just a few days after the oil price registered its largest-ever single-day increase, reaching $139.12 per barrel last week.

Since then it has fallen to around $134 per barrel.

Although Mr Miller's forecast is well ahead of previous market predictions, other major forecasters are anticipating a spike in prices as high as $200 per barrel.