Fill up like it’s 2009: Petrol could dip under £1 a litre, says RAC
Prices at the pump could soon be back at 2009 levels, with the RAC predicting petrol is on course to drop under £1 a litre.
Speaking on the BBC's Today show this morning, RAC chief engineer David Bizley suggested that a "lag" in the system would mean that recent drops in the wholesale fuel price would filter through to the forecourts in the next few weeks.
Petrol currently costs an average of £1.07 a litre but, with some places selling at four pence lower than that, it is anticipated that a recent two pence drop in wholesale prices could push some prices down close to the £1-mark.
"There's typically about two weeks lag in the system," Bizley said.
"So there's a very good chance that within a few weeks people will be selling fuel at £1.01, and then the temptation to move that extra penny or so will be unavoidable."
The last time petrol prices were that low was in the summer of 2009, according to the RAC.
Earlier this week, the RAC has expressed its hope that drops in the cost of oil would be passed on to consumers.
“With oil prices already consistently low as a result of too much supply, the dip – even though it will be temporary – should still be reflected in wholesale prices, making fuel cheaper for motorists," RAC fuel spokesman Simon Williams said.
“We hope retailers will be quick to pass on these new wholesale fuel savings at the pumps to make the cost of litre cheaper still. A barrel of oil has now not been above $50 since mid-October and not consistently above that mark since the end of July."