Motoring group the RAC is calling for fuel retailers to cut the price of fuel before Christmas, following further reductions in the wholesale price of oil

The RAC believes there is scope for the price of petrol to come down by 7p a litre to 114p/litre and diesel down by 6p a litre to 120p/litre, prices which the group claims, motorists haven’t seen since March 2010.

In June, the price of oil reached at high at $115 (£73) a barrel, but since then it has fallen dramatically. Last week (December), it stood at $68 (£43.5p). The RAC said that while the savings have been passed onto customers, the latest round of cuts needs to be done quickly to demonstrate transparency.

“Retailers now have a very reasonable record on transparent pricing so we have no reason to believe that they will not pass on the savings in the wholesale price, we just urge them to do it sooner rather than later to make the point very clearly to motorists and fleet managers that they operate a fair pricing system,” said Simon Williams, RAC fuel spokesman.

During the autumn statement, the chancellor announced the introduction of signs that will show fuel price comparisons on motorways.

The electronic signs will be installed on the M5 between Exeter and Bristol during 2015, with politicians hoping to increase competition between motorway service stationd, acknowledged as the most expensive places to fill up with fuel.

The RAC recently released a study where it said two thirds of motorists felt motorway prices should be capped, after finding differences of up to 10 per litre between service stations and other refueling points.