RAC: Petrol prices set to fall below £1 a litre

The RAC has predicted that petrol could fall below £1 a litre due to plummeting price of oil worldwide.

18:14 17 December 2014

Motoring group RAC has predicted that petrol could fall well below £1 a litre. If this is correct, it would mean the price of petrol could soon be at its lowest since May 2009. The forecast was based on the price of Brent crude, which fell below $59 a barrel on Tuesday.

"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," said RAC fuel spokesman Simon Williams.

The RAC added that based on their data, the average price for a litre of petrol is at 116.9p or nearly 14p cheaper than at the start of the year.

However, the RAC warned that the oil and fuel market is volatile and that the forecasts can change depending on several factors including global production and strength of the pound against the dollar.