The big four supermarkets are all slicing 2p off their petrol and diesel. Unfortunately for motorists, the supermarkets are still some way off being able to retail for below £1 a litre.
Tesco's cut will kick in this afternoon while reductions at Sainsbury's, Morrisons and Asda will take effect tomorrow. Yesterday, the Harvest Energy service station in Birmingham achieved the much-vaunted below £1 a litre petrol price at 99.7p.
RAC fuel spokesman Simon Williams commented:
We have been expecting to see the price of petrol come down to £1 per litre, or lower, for some time thanks to the decline in global oil price and retailers willing to make cuts at the pump on an almost weekly basis.
The cuts come as the price of oil plummeted to a six-year low, with Brent Crude dropping $1.43 to $48.68 per barrel. Investment banking giant Goldman Sachs radically reduced its 2015 forecasts for Brent to $50 per barrel - down from $83 per barrel.
Opec, the cartel of oil-producing nations, has insisted it won’t lower its prices as it attempts to counter the rise of the US shale industry. Motorists will be keeping a close eye on the big supermarkets hoping to reap the benefits of the global abundance of cheap energy. The RAC believes it is only a matter of time until motorists receive further benefits.
RAC fuel spokesman Simon Williams said:
We are surely only weeks away from the milestone price of 1 a litre being a common sight at petrol stations up and down the country.