Coronavirus pushes petrol down to almost £1 a litre for the first time since 2016
UNLEADED petrol prices could be pushed below £1 a litre for the first time since 2016 due to the impact coronavirus has had on oil prices.
Based on the current price of oil, motoring body the RAC says we should already see prices at the pumps falling below the £1 mark.
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Currently, the RAC says the average price at the supermarkets is £1.05 a litre for unleaded and £1.11 a litre for diesel.
But the lowest price it's seen at the supermarkets is £1.03 a litre for unleaded and £1.09 a litre for diesel.
Just last month Asda and Morrisons slashed petrol prices by up to 12p a litre.
While The Sun reported just last month how one fuel station in Birmingham has started selling petrol for under £1 per litre.
And just last week prices at the pumps suffered their largest drop since records began.
Could petrol prices fall even further?
But based on wholesale prices - the price retailers pay for fuel - the RAC reckons motorists should be paying even less.
At just the start of March, the price of a barrel of crude oil was above $50.
But it has since plummeted to $22 a barrel and has already fallen as low as $18 a barrel this year, according to the RAC.
The last time prices at the pumps dipped below £1 for unleaded was back in March 2016 when oil stood at a higher $26 a barrel.
As such, the RAC says there is still scope for forecourts to come down even further, to 98p per litre for petrol and 108p for diesel if retailers pass on the savings they are making to drivers.
Ways to cut down on your fuel costs
HERE are some tips on how you can slash the cost of fuel
- Make your car more fuel-efficient. You can do this by keeping your tyres inflated, taking the roof rack off, emptying your car of clutter and turning off your air con when driving at lower speeds.
- Find the cheapest fuel prices. PetrolPrices.com and Confused.com allows you to search prices of UK petrol stations. All you need to do is enter in your postcode and tell it how far you want to travel (up to 20 miles).
- Drive more efficiently. Some ways to do this, include:
- Accelerate gradually without over-revving
- Always drive on the highest possible gear
- If you can, allow your car to slow down naturally as your brake is a money burner
- Re-starting your car is expensive, if you can keep moving
But Simon Williams, RAC fuel spokesperson told The Sun that retailers are holding back due to a lack of demand.
He said: "We're in unprecedented times and it's difficult for smaller retailers to pass on these savings.
"People aren't buying fuel like normal as typically only essential workers and lorries carrying deliveries are travelling.
"Normally, we'd be calling for retailers to drop prices but I fear these retailers won't survive if they do and we'll be worse off if we lose small retailers as there will be less competition.
"Drivers who can't get to supermarkets also rely on these retailers for fuel."
Why has coronavirus hit petrol prices?
The price of petrol at the pumps is linked to the price of oil.
But the price of oil has fallen for two reasons - firstly, because people aren't travelling as much due to global coronavirus lockdowns, which means there's less demand for oil.
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Mr Williams, explains that China, for example, is the second biggest oil consumer so the coronavirus lockdown has had a big impact on demand.
Secondly, Mr Williams explains that major oil producing nations, including Russia and Saudi Arabia have been unable to agree a deal on how to cut supply leading to an overproduction of oil.
