Petrol price could fall below 110p per litre for the first time since August 2016 as wholesale oil costs plummeted after a fall in demand. Prices in some regions have fallen to as low as 117p per litre despite the UK average petrol price remaining at 122.85pence.
A massive seven pence reduction would produce savings of around £3.85 per tank with the AA predicting a two-car family could save as much as £15.50 per month.
A huge financial crash yesterday knocked 22 percent off the price of Brent crude, the global benchmark for oil prices.
US oil saw a 20 percent decline as oil prices suffered their biggest fall in one day since 1991.
The dramatic falls are down to a loss of demand for oil as several regions across the world go into lockdown over coronavirus panic.
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Data from the Department for Business, Energy and Industrial Strategy shows petrol and diesel costs have fallen for five consecutive weeks since the start of February.
Luke Bosdet, AA fuel price spokesman said: “The spat between oil producers echoes the oil price crash in 2015, when £1-a-litre fuel returned to UK petrol stations.
“There is still a long way to go and the chances of another major collapse in forecourt prices will depend on how long the oil price plunge continues and how quickly UK retailers pass on savings.
“There is then the matter of whether the nation is in the mood to travel and take maximum advantage of the lower prices.”
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Oil expert Simon Watkins has revealed global oil prices could fall as low as $ 20 per barrel which could lead to a global disaster.
He claims for every $ 10 per barrel change in the price of crude oil results in a 25 percent change in the price of petrol and diesel.
Mr Watkins said: “It is extremely likely that oil prices will continue to fall, as we have now entered a full-scale oil price war involving the top three oil producers – the U.S., Russia and Saudi Arabia.
“With huge new volumes of oil coming into the market that will only add to its existing supply overhang and to the soft demand profile resulting from the effects of the coronavirus.”
Last month, experts at the RAC predicted the illness would see a dramatic fall in the price of petrol and diesel costs in the UK.
Analysts said the virus could see petrol and diesel declines as soon as oil dropped below $ 60 in January.
The group said costs would fall as people were cutting down on their grave plans and fear from traders that demand would be affected.
Reacting to the sudden drop in the price of oil, RAC experts sad the decline could see at last 10p per litre coming off the price of unleaded over the next fortnight.
Simon Williams, RAC fuel spokesman also called upon Chancellor Rishi Sunak to not increase fuel duty given the current market conditions.
He said: “This is looking like the biggest single daily drop in the oil price in 20 years.
“It should translate to some serious cuts at the pumps, particularly as the price of both petrol and diesel is still overpriced despite two rounds of cuts from the supermarkets last month.”
Mr Williams added: “We strongly urge every fuel retailer – large and small – to pass on these savings as soon as possible.
“But we expect the big supermarkets who sell the lion’s share of fuel to lead the way with some swift and significant cuts in the next few days.”