1. ITV Report

Could the price of petrol drop to £1 a litre before Christmas?

Motorists could soon save more money on petrol. Credit: PA Wire

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.

We expect Britain's supermarkets and cheapest fuel retailers to be selling petrol at £1 a litre or less in time for Christmas.

These retailers consistently tend to be 3p-5p a litre cheaper than the UK average price.

We are still some way off the average price of unleaded reaching the £1-a-litre mark, but this will be a big step in the right direction.

If retailers don't pass on the savings quickly, they will be giving themselves an unpopular Christmas boost to profits by pocketing the extra margin - they should really be passing this on to their customers instead.

– RAC spokesman Simon Williams

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.