**Northern Ireland**: Petrol prices are expected to decrease by up to 10p per litre due to reduced global energy costs. Economists warn that this drop, linked to President Trump’s tariffs, signals deeper economic uncertainties, raising risks of a potential recession ahead.
An economist has noted that petrol prices in Northern Ireland are anticipated to decrease by as much as 10p per litre in the coming weeks, a development attributed to a significant decline in global wholesale energy costs. This price reduction is in line with broader trends across the UK, resulting from a dip in the price of Brent crude oil, which is projected to fall to approximately $64 a barrel, marking a 16% decrease compared to earlier this year.
Richard Ramsey, an economist, conveyed that while the potential drop in petrol prices could be perceived as a silver lining amid President Donald Trump’s controversial tariff policies, it has arisen due to mounting fears of a global economic slowdown. In recent months, Trump has enacted aggressive tariffs on a range of key imports including steel, aluminium, and hundreds of billions of dollars’ worth of goods from China, which are part of his broader “America First” strategy aimed at bolstering domestic industries.
Ramsey explained the current economic context, stating, “With these tariffs and Trump’s idea of ‘liberation day’, what’s really been liberated is uncertainty — and even chaos — as far as financial markets are concerned.” He further elaborated on the implications of the tariffs, noting that their introduction has resulted in a decline in demand for fuel in industrial and transport sectors, which in turn has contributed to lower oil and gas prices. Although this situation brings immediate advantages for energy consumers, it also heightens the risk of a longer-term recession.
While some energy analysts have predicted that household energy bills may not see an immediate drop, hinting at the potential for energy suppliers to offer more competitive deals in anticipation of the upcoming Ofgem price cap review, the overall sentiment among economists remains cautious. Ramsey pointed out, “This is the biggest tariff hike in over 100 years,” and stressed the complex interplay of tariffs and market conditions affecting fuel prices.
Trump has reiterated his commitment to the tariffs, describing them as “medicine” for the economy, and indicating a lack of concern regarding the impact of significant stock market sell-offs. On a recent occasion aboard Air Force One, he stated, “Sometimes you have to take medicine to fix something,” implying a willingness to endure short-term market fluctuations for long-term gains.
The recent volatility in stock markets, highlighted by a dramatic fall in the Dow Jones index, has seen some recovery as hopes rise for potential trade agreements that might mitigate tariff impacts. Despite the current price cuts at the pump, the economic landscape remains precarious, with Ramsey cautioning that, “It’s a temporary upside in a much darker scenario. You don’t want to celebrate falling prices when they’re being driven by a looming recession.”
As consumers in Northern Ireland prepare for lower petrol prices, the broader implications of these economic shifts and tariff policies continue to unfold on both local and global stages.
Source: Noah Wire Services
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