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RAC: Fuel prices may have 'bottomed out'

Date: 03 February 2016   |   Author: Daniel Puddicombe

The RAC has suggested that fuel prices may have bottomed out in January when prices on many forecourts stood at less than £1 per litre for both petrol and diesel.

According to the motoring organisation, the cost of a barrel of oil hit a 12-year low of $26 on 20 January, but has since rebounded, finishing the month at $33, causing the retail price of fuel to rise once again.

At its lowest, the price of diesel fell to below 98p/litre, thanks to supermarkets fighting to undercut each other on many forecourts.

"Motorists have seen petrol and diesel prices reach their lowest points since 2009. January saw the oil price go into free fall with talk of a barrel dropping to $20 and possibly even to $10, but since the low of $26 a barrel the market has started to creep back up," said RAC fuel spokesman Simon Williams.

"If this continues for a sustained period, wholesale costs will rise further which will in turn lead to pump price increases," he added.