£1 a litre - too good to be true?

Motorists should not start the celebrations just yet. The average pump price for unleaded petrol is still around £1.07.

The RAC predicts petrol prices could drop to £1 a litre before Christmas. Credit: Lewis Whyld/PA Archive/PA Images

Today I spoke to industry insiders from supermarkets and independent fuel retailers.

They are not as bullish as the RAC in believing prices will get so low. They say that to reach £1 a litre on average will require more sustained drops in wholesale prices.

Even then, there can be a two-week time lag before effects reach the forecourts. Many supermarket prices are short-term promotions to lure in the festive shoppers. So it might be top of their wish list, but drivers may not get what they want for Christmas.

Video report by ITV News consumer editor Chris Choi: