A Festive Treat For Motorists and New Car Buyers

Published Date: 9th Dec 2015

Many UK forecourts are expecting to drop the price of petrol down to £1 a litre in time for the Christmas holidays. The RAC believes the falling oil prices will lead to a 3p drop for petrol and 5p for diesel per litre.

Average prices would then stand at 103 pence for petrol and 104 pence for diesel, but with the big supermarkets in the mix, many expect it to be lower than forecasted. A spokesperson for the RAC said “We fully expect the UK’s supermarkets and cheap fuel retailers to be selling petrol at £1 a litre or less in time for Christmas.”  As we all know these retailers tend to peddle their fuel 3-5 pence cheaper than the average price.

The recent savings have been due to declining oil prices, which are now close to a seven year low. With a barrel of crude oil going for 41 US dollars earlier this week. A year ago the cost of a barrel was $65 and 18months ago the crude was at $115 a barrel. Last month saw a return to sub 100 pence pricing as ASDA dropped petrol to 99.7p a litre for a three day promotion. Diesel is also at a six year average low coming in 109.1p per litre.  

A Christmas boost in sales is on the cards for retailers willing to pass on the savings to their customers. With the price of oil looking to stay low for the long term it would be a welcomed Christmas break for motorists and new car buyers alike.