Petrol prices could soon be seen at below £1 a litre thanks to the plummeting price of crude oil, predicts the RAC.
If the prediction proves to be right this would take prices at the pumps to their lowest level since May 2009.
The RAC’s forecast is based on brent crude which has fallen to below $59 a barrel for the first time since May 2009. There is currently no signs that the price has reached it’s lowest yet.
The RAC have said they expect that petrol will be sold for below £1 a litre within the first few months of 2015.
Simon Williams, RAC fuel spokesman, has 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 we forecast on December 6 that prices were due to come down by 7p a litre for petrol and 6p for diesel.’
The RAC have said that their monitoring of fuel prices showed the average price for a litre of petrol was currently 116.9p a litre which is nearly 14p cheaper than the start of 2014.
Diesel was nearly 16p cheaper at 122.33p a litre when compared to 138.24p at the start of 2014. The average supermarket price of fuel is 114.26p for petrol and 120.18p a litre for diesel.
Simon Williams continued ‘The cost of going to visit family and friends this Christmas will be the cheapest it’s been for nearly five years, but the prospect of petrol going below £1 a litre in the new year is incredible, particularly when prices at the beginning of 2014 seemed to be heading ever upwards.
‘Current forecasts are for average petrol prices to fall to below 110p a litre in the next fortnight and diesel to drop to under 116p.
‘At these average prices across the country the cheapest retailers will almost certainly be selling petrol for around 105p a litre, or even lower.’
The RAC has cautioned that the oil and fuel markets are very volatile and that its forecast could change if other factors such as the strength of the £ against the $ or the production rate of oil dramatically changed.