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RAC claims petrol at pump could fall to £1 a litre

11 Dec 2015

The RAC has claimed that petrol at the pump could drop to 1 a litre before Christmas, following significant falls in the price of crude oil.

The motoring organisation predicts that there should be a 3p a litre drop for petrol prices and 5p for diesel in the next few weeks, providing that retailers pass on savings to drivers. That would take the average forecourt price to 103p and 104p respectively, but the RAC expects supermarkets in particular to cut prices further than that.

Earlier this week, the price of Brent crude oil fell below $40 a barrel for the first time since 2009. As recently as June 2014 the price was over $115 a barrel.

RAC spokesman Simon Williams said: ‘All we need is for the supermarkets to do the right thing and embrace the season of goodwill by passing on those savings at the pump to make Christmas that much cheaper for everyone. We are still some way off the average price of unleaded reaching the 1 a litre mark but this will be a big step in the right direction.

‘If retailers don't pass on the savings quickly, they will be giving themselves an unpopular Christmas boost to profits by pocketing the extra margin when they should really be passing this on to their customers instead.’

Tesco and Asda have already cut petrol prices by 2p per litre, while Sainsbury's said it would cut prices by ‘up to 2p’.