With oil prices continuing their downward spiral the RAC has predicted the UK could see fuel prices as low as 86p a litre.
In a statement released by the RAC they explain that since the beginning of December 2015 oil prices have tumbled by 30% to 12-year low of $30.06. Unfortunately, wholesale fuel prices have not yet reflected these record lows so drivers are yet to take full advantages at the pumps.
Simon Williams, RAC fuel spokesman said, “With no apparent end in sight to the free falling price of oil, motorists can expect some really low fuel prices in 2016. Breaking through the pound a litre price point for both petrol and diesel was clearly a welcome landmark, but it looks as though there is more to come.”
“Retailers still need to pass on more wholesale price savings on diesel to motorists at the pump, as the wholesale price is still 3p a litre cheaper than that of petrol,”
Analysts predict that oil prices could drop to as little as $10 a barrel leading to UK prices dropping to an astonishing 86p per litre, as long as the pound does not continue to weaken against the US dollar.
With supermarket fuel price wars shaking up the market, UK drivers are already enjoying sub £1 a litre prices for the first time since 2009 (more here). Here’s hoping that the slowing world demand in fuel combined with high production rates by the US and other fuel producing nations keep fuel prices low for the foreseeable future.
At the time of publication PetrolPrices.com reports that the average price of Petrol across the UK is 102.52p with Diesel costing 103.19p a litre.
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