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RAC predicting £1/litre fuel in time for Christmas

Date: 09 December 2015   |   Author: Daniel Puddicombe

The RAC is predicating that motorists could pay £1 a litre for petrol during the Christmas period, thanks to the wholesale price of oil falling.

According to the RAC Fuel Watch report, the price of a barrel of oil fell from $41.80 (£27.67) on Friday to $39.77 (£26.33) on Monday following a meeting on Friday where OPEC delegates dismissed cutting production to increase the price.

This led to reductions in the wholesale price of both unleaded and diesel which the RAC said would lead to a cut of 3p a litre in the average price of petrol and 5p a litre off diesel, taking average prices to around 103p for petrol and 104p for diesel. Diesel is already at a six-year low, with the average price reaching 109.18p on Friday.

"With the price of wholesale unleaded dropping due to oil falling below $40 the climate is right for £1 a litre petrol, 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 bit cheaper for everyone," said a RAC Fuel Watch spokesman.

"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," he added.