- Average price of unleaded expected to fall within days
- Estimated savings of £9 per tank of petrol and £11 for diesel
- Long-term outlook is for oil prices to stay low
British motorists are set to be treated to petrol at £1 per litre or less, just in time for Christmas.
It relies on retailers "doing the right thing" and passing on savings made in the wholesale price of oil, which has fallen below $40 per barrel for the first time since 2009.
That is great news for company car drivers who pay their own fuel bills, and could see monthly costs drop significantly as a result. These estimated prices should leave motorists saving around £9 on a tank of petrol for a 55-litre car when compared to last year’s prices, and around £11 for a tank of diesel.
RAC Fuel Watch data shows Brent crude oil slipped to $39.77 following OPEC’s meeting in Vienna on December 4, leading to significant reductions in the wholesale price of both unleaded and diesel. The RAC believes this will lead to petrol being cheaper than it is today by 3p per litre on average, and diesel by 5p per litre, taking average prices to around 103p and 104p respectively.
Simon Williams, RAC Fuel Watch spokesman, said: “The climate is right for £1 per litre petrol, all we need is for the supermarkets to do the right thing and embrace the season of goodwill by passing on these savings at the pump.
“Motorists have already enjoyed petrol at under £1 as one supermarket cut prices nationwide as part of a three-day promotion at the end of November, but this should now become a common sight across the country.
“The long-term outlook is for oil prices to stay low. OPEC is not due to meet again until June 2016 so unless an extraordinary meeting is called, it is anticipated production will continue to outpace demand and in turn keep wholesale fuel prices low.”