Petrol could plunge to £1 per litre after Saudi Arabia and Russia began a trade war.
The two oil giants were forced to act after a sharp slump in demand sparked by coronavirus.
They went head-to-head to try to bag as much of the market share as possible. AA fuel price spokesman Luke Bosdet said: “The spat between oil producers echoes the oil price crash in 2015, when £1-a-litre fuel returned to UK petrol stations.”
The Saudis slashed prices by 20% as oil lost a third of its value –the biggest daily fall since 1991.
RAC fuel spokesman Simon Williams said: “This is looking like the biggest single daily drop in the oil price in 30 years.
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“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.
“The last time we saw the wholesale price of petrol this low was in March 2016 which led to an average price of 106p a litre two weeks later.”
New Chancellor Rishi Sunak will have a say in what happens at the pumps when he announces his Budget on Wednesday.
Conservative backbenchers last night urged him not to “balance environmentalism on the backs of working people”.
Yesterday was dubbed Black Monday as global markets suffered their worst day since 2008.
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