Great news for motorists this year- petrol could drop to less than £1 a litre, which is the lowest price since May 2009.
The RAC have revealed that oil is now below $60 a barrel and will keep dropping.
Supermarkets have set the example by cutting their petrol prices in that last few months, with Asda recently joining in.
It was announced that they would cut 2p off a litre of petrol and 1p off diesel as of tomorrow.
Consequently Asda customers will pay no more than 110.7p a litre for petrol and 117.7p for diesel.
"What's currently happening at the pumps with falling fuel prices is something many motorists will not remember seeing before," RAC fuel spokesman Simon Williams said.
"Talk of prices going up like a rocket and falling like a feather could not be further from the truth as retailers have been quick to pass on savings at the forecourt since we forecast on December 6 that prices were due to come down by 7p a litre for petrol and 6p for diesel."
The RAC are optimistic that drivers will notice a difference in their petrol bills the New Year.
The average price of petrol is currently 116.9p, which is 14p cheaper than at the beginning of 2014.
Diesel is nearly 16p cheaper, with an average cost of 122.33p per litre, whereas it was 138.24p in early 2014.
The average supermarket price is 114.26p per litre and 120.18p for diesel as they continue to undercut their competitors.
Mr Williams added: "Current forecasts are for average petrol prices to fall to below 110p a litre in the next fortnight and diesel to drop to under 116p.
"At these average prices across the country the cheapest retailers will almost certainly be selling petrol for around 105p a litre, or even lower."
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