Experts are predicting that fuel prices across the country could drop to the milestone figure of £1 a litre in coming weeks after fuel prices have just dropped further.

On the 12thJanuary, three forecourts in the West Midlands dropped their petrol prices to 99p per litre – according to reports. Tesco, Asda and Sainsburys announced shortly after that they would be cutting another 2ppl of unleaded and diesel prices, which were action yesterday (13thJanuary).

The price drops, at their lowest since 2005, have been greeted by the RAC. The decision of three forecourts in the West Midlands – to sell petrol for under £1 a litre – hasn’t been seen since 2009 and is now having a ripple effect on the major supermarkets as they are continuing to lower their prices still. With a barrel of oil now costing just $47, we are surely only weeks away from the milestone price of £1 a litre being a common sight at petrol stations up and down the country. This will have a very positive effect on reducing the average petrol and diesel price for motorists countrywide.

As the current over supply of oil is believed to be part of a long-term OPEC strategy to keep oil prices low, there is every reason to think that motorists may well enjoy low prices for some time to come. However we are now getting to a point where the share that the treasury takes from the forecourt is reaching near 75% which is a bitter pill for motorists and retailers. We should be seeking a commitment from all major political parties that they will not increase fuel duty in the next parliament.

The increased competition in oil and petrol fuel prices means fleets have a real opportunity to make new operations savings. Fleet managers will rightly see these savings as a bonus, but they should ensure they are benefiting from the price competition that we are seeing. 

- Danielle Wheeler