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Petrol may fall below £1 a litre, says RACBack

200513 Save money on fuelThe RAC has predicted that in the New Year petrol prices could well fall to below £1 a litre thanks to the plummeting price of oil.

Providing this prediction is correct, it will mean that the price of petrol will be at its lowest level in almost 6 years.

The forecast is based on the price of Brent crude oil which fell to its lowest price since May 2009 at $59 a barrel, and it continues to drop.

RAC fuel spokesman Simon Williams said: “Talk of prices going up like a rocket and falling like a feather could not be further from the truth as retailers have been quick to pass on savings at the forecourt.”

Research by the RAC found that the average price for a litre of petrol was currently 116.9p – nearly 14p a litre cheaper than at the start of the year, with diesel nearly 16p cheaper at 122.33p a litre, compared to 138.24p in January.The average supermarket price of fuel is 114.26p a litre for petrol and 120.18p for diesel.

However, the RAC has cautioned those who may be complacent by stating that the oil and fuel market remains volatile, and that its forecast could change if factors such as the strength of the pound against the dollar or the global production of oil changes significantly.

Neil Addley, managing director of Trusted Dealers said: ‘It’s great to see petrol prices falling. Motorists have been taking it in the neck with high fuel bills and tax for far too long. But we should urge a note of caution as historically oil companies have increased prices like a rocket and only seen them fall like a feather’

The RAC have said it expects petrol to be below £1 a litre early in 2015.

Posted by Leana Kell on 17/12/2014