PRICES at the petrol pumps are falling in Swindon - and motorists could be looking at even greater reductions in the new year, according to the RAC.

The average price of fuel across the town yesterday stood at 116.6p per litre for unleaded and 122.7p per litre for diesel, according to price checking website, petrolprices.com.

The savings are due to the plunging price of world oil combined with petrol firms passing on the lower costs more quickly, according to the RAC, which says motorists could see the cost of a litre of petrol dipping below £1 in January.

It said the price of Brent crude, now below the 60-dollars-a-barrel mark for the first time since early July 2009, was predicted to keep on dropping.

RAC fuel spokesman, Simon Williams, said: “What's currently happening at the pumps with falling fuel prices is something many motorists will not remember seeing before.

“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's monitoring of fuel prices shows the average price of a litre of petrol is 116.9p - nearly 14p a litre cheaper than at the start of the year.

Diesel is nearly 16p cheaper - 122.33p a litre now compared to 138.24p in January. The average supermarket price of fuel is 114.26p a litre for petrol and 120.18p for diesel.

In Swindon, Newport Street Service Station, in Old Town, was among the cheapest - with unleaded available for 110.9p per litre, and diesel at 117.9p.

Manager Velautham Sarves-waran said the branch tried to pass on savings to the customers as quickly as possible.

“We monitor prices elsewhere and pass on any savings we make as quickly as we can to the customer,” he said.

“Often, we cannot compete with the supermarkets, but we do the best we can.

“The prices are coming down and we have been reducing the prices for nearly six months now.”

Elsewhere, unleaded petrol was listed at Asda stations in Thamesdown Drive and at the West Swindon Shopping Centre, costing 112.7p per litre, followed by Sainsbury's in Paddington Drive at 112.9p and Tesco in Ocotal Way at 113.9p were among the cheapest.

For diesel, the Newport Street Service Station was at 117.9p per litre, Asda at 118.7p and Sainsbury's in Paddington Drive at 118.9p.

Mr Williams added: "The cost of going to visit family and friends this Christmas will be the cheapest it's been for nearly five years, but the prospect of petrol going below £1 a litre in the new year is incredible, particularly when prices at the beginning of 2014 seemed to be heading ever upwards.

“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.”