Motoring organisation, the RAC, says it is optimistic petrol could soon be selling for less than £1 litre.
It is due to the plummeting global oil price, with the price of Brent crude now below the $60 a barrel mark for the first time since early July, 2009.
The price is predicted to keep on dropping after OPEC (Organisation of the Petroleum Exporting Countries) indicated it will not cut production even if oil hits $40 a barrel.
In July, 2009, the average price of unleaded was 103.09p a litre and diesel 104.22p, due to the slightly stronger pound which affects pump prices as fuel is traded in dollars. While the pound is currently a little weaker than it was then at $1.57 there is a very good chance forecourt prices will continue to fall as the price of a barrel of crude goes lower.
The RAC is now hopeful this will lead to petrol being sold nationally for under £1 a litre in the first few months of the new year.
RAC fuel spokesman Simon Williams said: “What’s currently happening at the pumps with falling fuel prices is something many motorists will not remember seeing before. “Talk of prices going up like a rocket and falling like a feather could not be further from the truth as retailers have been quick to pass on savings at the forecourt since the RAC forecast on December 6 that prices were due to come down by 7p a litre for petrol and 6p for diesel.”
The RAC’s monitoring of fuel prices shows the average price of a litre of petrol is 116.9p (Dec 14, 2014 – the latest available price) – 13.89p a litre cheaper than the start of the year when it was 130.79p – and diesel is 15.91p cheaper – 122.33p a litre now compared to 138.24p in January.
On December 15, 2014, the average supermarket price of fuel was 114.26p for petrol and 120.18p for diesel.
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