Petrol prices may fall below £1 a litre again

Petrol prices have been tumbling
Petrol prices have been tumbling

Motoring organisation the RAC is predicting that petrol prices will drop below £1 a litre in the new year.

If fuel prices fall below the £1 barrier in January it will be the first time in nearly six years they have been that low.

In recent months the price of crude oil has plummeted, leading to a gradual fall in prices at the pumps.

Currently, the average price for unleaded at supermarket pumps is £1.14 per litre, with diesel at £1.20 per litre.

Simon Williams of the RAC added: “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.

“It is, however, important to realise that the oil and fuel market can always change due to a number factors, including the strength of the pound against the dollar and the global production of oil. If the current oversupply situation remains then it will clearly be good news for motorists and businesses that rely on the road network.’’

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