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New figures have shown that the average price of diesel has reached a six year low and that prices  will continue to fall in the run up to Christmas.

According to RAC fuel watch data the price fell to £109.48p per litre on Monday, the lowest price its been since December 2009.

November also saw the petrol price drop with Asda’s 99.7p a litre over the Black Friday weekend. Morrisons also rewarded their customers who spent £40 in store with a 7p discount on fuel.

These new figures mean that the average cost of filling up a 55 litre family car with petrol has plunged  by £7.75 compared to a year ago, while a tank of diesel is £8.95 cheaper.

Lower prices have been attributed to crude oil tumbling to $40.40, its lowest level since February 2009.

How long this will last is anyone’s guess, however with the prices so low make the most of it while you can.

UK inflation rose in July with the Consumer Prices Index (CPI) measure rising to 0.1%. In June, the percentage stayed at 0% and the Office for National Statistics (ONS) stated that the main reason that inflation rose is because of the lower prices of clothing.

However, the Retail Prices Index measure of inflation has stayed the same at 1% and this will be used to calculate rail fare increases. The fares will remain the same until next year.

For the last six months, CPI has been almost flat and turned negative in April. This is the first time since 1960. CPI inflation strips out increases in energy, food, alcohol and tobacco. In addition to this, the underlying measure of CPI inflation rose to 1.2% in July, which is a five-month high. The ongoing supermarket price war could be the reason that CPI was held back, with a 2.7% year-on-year fall in the price of food and non-alcoholic drinks.

Taking all this into consideration, there has been question over when the Bank of England might raise interest rates. The Bank has a target inflation rate of 2%.

In the past two months, the drop in the price of oil has fallen by nearly a quarter, which is why analysts have said that the inflation rate could fall back again.

Reports have stated that the amount of oil in the Gatwick airport area could be about 70% more than expected, an exploration company says. There are around 271 million barrels of oil per square mile (mmbo) in the Weald, UK Oil and Gas (UKOG) estimated. However, the total amount of oil in the field has not been revealed yet.

A past report estimated about 158 mmbo once an exploration had taken place at Horse Hill. Local people were concerned about pollution, according to Friends of the Earth. There are plans put in place by UKOG to drill more exploration wells in the Weald and to assess the potential of the reserves in the area.

In the South of England, oil has been produced onshore for many years. Across the Weald, there are currently around a dozen oil production sites. It is in an area spanning Kent, Sussex, Surrey and Hampshire.

UKOG has suspended their shares temporarily because of the announcement about the Horse Hill oil reserves. Shares were suspended on Aim from 7.30am and other companies who are also involved in the Horse Hill development have suspended. Other companies include Solo Oil, Alba Minerals, Stellar Resources and Doriemus.