Many fuel retailers are expected slash prices after oil values fell to a seven-year low.
The RAC believes it will result in a 3p drop for petrol and 5p for diesel.
Average prices would then be about 103p for petrol and 104p for diesel - but experts think many forecourts will go lower.
RAC spokesman Simon Williams said: "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."
A barrel of Brent crude reached 41 US dollars this week - down from 115 in June last year.
It has led Tesco and Asda to cut petrol and diesel prices by 2p a litre. Sainsbury's said it would cut its prices by "up to 2p".
Mr Williams added: "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.
"The long-term outlook is for the oil price to stay low."
Last month saw a return to petrol being sold for less than £1 a litre as Asda cut prices to 99.7p in a three-day promotion.
The average price of diesel dropped to 109.18p on Friday - a six-year low.
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