Petrol now cheaper in Texas than Abu Dhabi

The volatile oil market led to a rare celebration among Texan motorists this week - it became cheaper to fill up in Houston than in Abu Dhabi for the first time since 2008.

Falling crude prices had pushed Middle East governments to cut their fuel subsidies in recent months. At 1600 GMT, Brent Crude was at $32.20 per barrel while West Texas Intermediate was at $31.50.

In the United Arab Emirates - where Abu Dhabi is the capital - the cheapest grade of petrol was selling for AED 1.51 per litre (£0.29) according to data compiled by Bloomberg. In Houston, the lowest pump price according to GasBuddy was $1.32 per US gallon (£0.25 per litre).

The benchmark Brent Crude price had dripped more than 15% already this year, which was leading to price drops at the pump for most motorists in the West but having the opposite effect in Gulf nations.

Saudi Arabia, Qatar, Bahrain, Oman and the United Arab Emirates have all cut their fuel subsidies - or removed them completely - in the last six months.

Britons were still paying relatively high fuel prices, with the average unleaded price on 26 January being £1.02 per litre according to Experian Catalist, compared with the average US price of £0.34 per litre ($1.83 per US gallon) for the same day, according to the AAA.