The price of a litre of fuel could reduce to the £1 mark - or even slip below the psychologically important barrier - in the coming weeks delivering further savings to fleets.
The price of a barrel of oil has fallen to $40.40 - its lowest price since February 2009 - paving the way for another round of pump cuts and making the sight of £1 a litre at the cheapest forecourts ever more likely, according to RAC. It expect pump price reductions of around 2p a litre in the next fortnight.
The average price of petrol, which has fallen for the last four months, currently stands at 108.01p whereas diesel is at 110.24p.
RAC fuel spokesman Simon Williams said: “With oil prices already consistently low as a result of too much supply, the dip - even though it will be temporary - should still be reflected in wholesale prices, making fuel cheaper for motorists. We hope retailers will be quick to pass on these new wholesale fuel savings at the pumps to make the cost of a litre cheaper still. While we are a way off average petrol prices reaching £1 a litre, there is a good chance the most price-competitive fuel retailers will take the plunge.”
With Chancellor of the Exchequer George Osborne due to make the government’s Autumn Statement on Wednesday (25th November), Mr Williams concluded: “Let’s just hope the Chancellor doesn’t spoil the party by using lower prices as an excuse to raise fuel duty.”