Mr Dudley said lower oil prices could mean UK petrol could fall below £1 per litre. This kind of petrol price was “not far off”, despite taxation forming a part of the fuel price.

“If prices keep going down, I’m sure you will [see £1 per litre],” he added.
North Sea job losses?

Sustained low oil prices are also likely to cause “stress” on oil producing countries such as Norway, Russia, Venezuela, Scotland, Nigeria and Angola, he said.

“All these countries are really going to feel it,” he said. “I think Scotland is going to be under some stress because of these low oil prices,” he said.

Meanwhile, Italian oil group Eni has said the next spike in oil prices could see them soar to around $200 a barrel.
Eni’s chief executive, Claudio Descalzi, said the oil industry would cut capital spending by 10-13% this year because of slumping prices.

He said that would create longer-term shortages and sharp price rises in four to five years’ time, if the Opec cartel fails to cut supplies.