Petrol prices are expected to drop below £1 in the run-up to Christmas, according to data from the RAC’s fuel watch.
That’s as long as retailers ‘do the right’ thing by passing on reductions in wholesale oil costs, says the RAC.
The motoring organisation says that oil is falling to below $40 a barrel for the first time since February 2009. At that time, the average cost of petrol in the UK was just 90.88p per litre.
We’re unlikely to see fuel prices dropping that much this winter, but the RAC says we could realistically see the sight of £1 per litre becoming commonplace.
RAC Fuel Watch spokesman Simon Williams said: “With the price of wholesale unleaded dropping due to oil falling below $40 the climate is right for £1 a litre petrol, all we need is for the supermarkets to do the right thing and embrace the season of goodwill by passing on those savings at the pump to make Christmas that bit cheaper for everyone.”
[bctt tweet=”The climate is right for £1 a litre petrol”]
Asda already reduced petrol to 99.7p per litre over the recent Black Friday weekend – but has since increased prices on its forecourts.
Williams added: “Motorists have already enjoyed petrol at under £1 as one supermarket cut prices at its 277 nationwide forecourts as part of a three-day promotion at the end of November, but this should now become a common sight across the country. If retailers don’t pass on the savings quickly, they will be giving themselves an unpopular Christmas boost to profits by pocketing the extra margin when they should really be passing this on to their customers instead.”
If retailers do pass on these savings, the RAC says motorists will see petrol being cutting in price by 3p a litre, while diesel prices will drop by 5p per litre.