Petrol Prices to fall below £1

Published Date: 5th Jan 2015

The drop in the cost of oil could take fuel prices to lowest level since May 2009

A dramatic drop in oil prices could see the cost of petrol fall below £1 per litre, according to the RAC. Such a fall in prices would see petrol at its lowest price since May 2009.

The cost of crude oil is currently less than $60 a barrel, and the motoring organisation believes that this is likely to keep falling.

It is expected that national petrol prices will fall below £1 per litre in the first few months of 2015.

Average prices of petrol in the UK are currently around 111p per litre, nearly 16p per litre cheaper than the start of the year. Meanwhile, diesel is almost 16p per litre cheaper than it was early in 2014 - currently at 122.33p per litre.

 

RAC fuel spokesman Simon Williams explained: "What's currently happening at the pumps with falling fuel prices is something many motorists will not remember seeing before.

"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 since we forecast on December 6 that prices were due to come down by 7p a litre for petrol and 6p for diesel.

"The cost of going to visit family and friends this Christmas will be the cheapest it's been for nearly five years, but the prospect of petrol going below £1 a litre in the new year is incredible, particularly when prices at the beginning of 2014 seemed to be heading ever upwards."

With the ever increasingly efficient new engines lowering riunning costs and offering benfits such as road tax exemption things are really on the up for motorists.