Supermarkets Drop Petrol Prices To Below £1

Two major supermarkets have announced they will be cutting unleaded petrol prices on their forecourts to less than £1 per litre.

Asda and Morrisons declared they would both be cutting the prices of unleaded to 99.9 pence per litre.

The move comes as a barrel of oil has dropped from a high of around $147 in July, to less than $80 - the lowest level for nearly 14 months.

Throughout the UK, the average price of unleaded petrol is around £117p, and in recent months the prices have risen as high as 120p for a litre of unleaded, and 130p for diesel.

Petrol has not been under £1 a litre in the UK since December 2007, and the move will be a welcome boost for consumers, during the current gloomy economic climate.

Asda spokeswoman Jennifer England said: "Unlike some of our competitors, our price is constant throughout the country and does not vary from area to area. This reduction will come as a relief to road users."

Asda also revealed diesel prices will also be reduced from 116.9p to 110.9p per litre at the pump.

Morrisons Chief Executive, Marc Bolland, said: "This is strong support for the millions of motorists that are served at our forecourts. We're absolutely committed to delivering real value for all of our customers - whether they're shopping in our stores or filling up at our forecourts."

Mr Bolland also said the price changes will apply to its 287 forecourts throughout the UK, and its diesel prices will be reduced to 111.9p per litre.

Last week Prime Minister Gordon Brown said he wanted to ensure the drop in oil prices was passed on to consumers "as quickly as possible".

(JM)