This would take petrol prices down to 114p a litre – levels last seen in the UK back in March 2010.
Diesel should also be cut by 6p a litre, taking it down to 120p.
The RAC says a “dramatic” fall in the price of crude oil can easily finance this. The 2014 high of $115.36 per barrel was reached in June; late last week, it stood at $68.59, which is $46.77 less.
In other words, the price of crude oil is 60 per cent less today than it was in the summer.
“Retailers now have a very reasonable record on transparent pricing,” said RAC fuel spokesman Simon Williams. “We have no reason to believe that they will not pass on the savings in the wholesale price.
“We just urge them to do it sooner rather than later to make the point very clearly to motorists that they operate a fair pricing system.
“If they do, we could well see petrol prices fall by well over 7p per litre in the next few weeks and diesel by almost 6p a litre.”
However, adds Williams, although crude oil is dramatically cheaper, UK motorists will not see the full extend of these reductions, due to the effect of fuel duty. This represents 58p in every litre, with VAT adding on an extra 20p.
If filling up the average family car costs £62.70, only £20.38 would be for the fuel itself – compared to £31.87 for fuel duty and £10.45 for VAT…