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 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.
RAC fuel spokesman Simon Williams 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 6 December that prices were due to come down by 7p a litre for petrol and 6p for diesel.
“If the current oversupply situation remains then it will clearly be good news for motorists and businesses that rely on the road network... we have every reason to think petrol at under £1 early in 2015 is a very real prospect.
“The cost of going to visit family and friends this Christmas will be the cheapest it’s been for nearly five years.”
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