The price of petrol could be cut to £1 a litre in time for the Christmas getaway.
The RAC has predicted that many retailers will pass on further savings from tumbling oil prices to motorists, with a 3p drop for petrol and 5p for diesel in the pipeline.
Tesco and Asda announced on Tuesday that they have slashed petrol and diesel prices by 2p a litre, while Sainsbury's said it would cut its prices by "up to 2p".
The recent savings have been attributed to plummeting oil prices which are at a seven-year low.
Twelve months ago a barrel of Brent crude oil cost 65 US dollars - it was worth 41 US dollars earlier this week.