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The price of crude oil has continued to fall throughout 2015, but so far forecourts have done very little to pass on this saving to motorists. With a handful of leading supermarket chains cutting the price of petrol to below £1 per litre starting from today, there could be a Christmas price war ahead.
The price of crude oil was slashed again on Friday with Brent crude now below $40 (£26.38) a barrel and close to a seven-year low, prompting the forecast of £1 a litre to be available on the forecourts before Christmas.
Today, supermarkets have taken the lead with Morrisons cutting the price of petrol to below £1 a litre, the lowest UK price level, excluding special promotions, since 2009.The supermarket chain will be selling petrol at no more than 99.9p per litre and cutting diesel by 1p a litre.
Furthermore, Asda is running a weekend 99.7p promotion on petrol.From Friday until Sunday only, drivers at Asda will pay that price for petrol and 103.7p a litre for diesel.
Tesco and Sainsbury’s have also cut prices by 2p a litre in hundreds of forecourts, and Asda have capped a litre of unleaded at 101.7p and 104.7p per litre of diesel.
Morrisons’ petrol retail director Bryan Burger said: “Today, for the first time in more than six years, we are moving unleaded prices down to below £1 a litre.
“This is a moment where motorists will feel some relief after being clobbered by tax and price rises for the last decade.”
Automotive group the RAC said supermarkets should “do the right thing” and pass on savings from falling oil prices. The company said there should be at least a 3p-a-litre drop for petrol prices and 5p for diesel, taking the average price to 103p and 104p respectively.
Morrinsons has said it will hold the price “for as long as possible” subject to changes in the oil and currency markets.To find the lowest UK petrol price in your area, visit www.petrolprices.com.