Petrol prices set to fall in the New Year

Motoring organisation the RAC is predicting that petrol prices will fall below £1 a litre in the New Year.

If fuel prices fall below the £1 barrier in January it will be the first time in nearly six years they have been that low.

In Hastings petrol at some pumps has already fallen to less than £1.20 a litre for diesel and under £1.15 for unleaded.

In recent months the price of crude oil has plummeted, leading to a gradual fall in prices at the pumps.

Currently, the average price for unleaded at supermarket pumps is £1.14 per litre, with diesel at £1.20 per litre.

Simon Williams, RAC fuel spokesman, said: “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 the RAC 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.”

Motorists can keep abreast of fuel prices by visiting: www.rac.co.uk/advice/fuel-prices-explained.