RAC Cars News

#WeLoveCars

Christmas Petrol Bonanza For UK Motorists

By raccars Published

Image Source

After months of misery, petrol prices are finally falling - and it looks like they could drop even further. The RAC has predicted that the price of petrol could drop below £1 per litre, taking fuel to its lowest price since May 2009.

Motorists are benefiting from a drop in the price of crude oil, with Brent crude currently trading at lower than $60 per barrel. The RAC has predicted that further price drops are yet to come and, if fuel companies pass these cuts on to the customer, the first few months of 2015 could see petrol priced below £1 per litre. At less than $60 per barrel, Brent crude oil is already at its cheapest since 2009, but industry analysts are optimistic that the price could fall even further, perhaps as low as $40 per barrel in 2015.

Currently, the average price for petrol in the UK is 116.9 pence per litre, which is already 14 pence per litre less than it was at the beginning of 2014. Similarly, the average price of diesel has dropped by 16p per litre over the course of the year, to its current 122.33 pence per litre. While fuel retailers are regularly criticised for failing to pass on cost savings in the price of oil to the customer on the forecourt, the RAC has praised them for being quick to respond to the drop in the price of crude oil this time. Supermarket fuel stations are leading the way by indulging in their usual petrol price war.

At the beginning of the year the situation looked bleak, with forecasts of petrol and diesel prices rising ever higher, but on 6 December, the RAC forecast a drop in petrol prices of 7p per litre and diesel of 6p per litre. The news is particularly welcome as the cost of Christmas hits, and many car owners planning to travel long distances to visit friends and family this festive season will certainly feel the benefit of lower fuel prices.

The last time the price of petrol fell below £1 per litre was 31 May 2009. The RAC is currently predicting that the average cost of petrol will drop to less than 110 pence per litre over the next couple of weeks, while diesel could go below 116p. This means that prices at the country's cheapest retailers could go as low as 105p per litre.

Looking to Buy?
Search for cars