Three of the UK's largest supermarkets have cut the price of petrol and diesel, drawing the battle lines for a New Year war at the pumps.
Traditionally the lowest-priced petrol retailers, supermarkets' pricing has come under pressure from independents in recent months, who have responded faster to falling oil prices.
Sainsbury's head of fuel Avishai Moor said:
From tomorrow we’re dropping the price of unleaded petrol and diesel by up to 2 pence per litre. This is another way in which we can offer our customers real value for money when they fill up with Sainsbury’s on New Year’s Day.
Oil prices have fallen by almost 50 per cent since the middle of the year, putting a strain on the UK's oil and gas sector.
However, the drop has eased pressure on consumers, as the falling price pushed inflation down to one per cent in November.