11th December 2015
Motorists are being given an early Christmas present as petrol will fall to below £1 a litre at hundreds petrol stations.
Asda has announced it is cutting petrol to 99.7p a litre and diesel to 103.7p per litre from today until Sunday – the second promotion the supermarket has run in the last two weeks.
Not to be outdone, Morrisons is also cutting its price of petrol to 99.9p a litre at its 336 petrol stations, with more rivals expected to follow suit over Christmas and New Year.
The fall to below £1 represents an average saving of £17 per week for motorists, compared to peak petrol prices seen in 2012 – or £884 a year.
The reduction in petrol prices follows a slump in the price of crude oil, which has fallen to under $40 a barrel – down from 40% a year ago when it traded at $65 per barrel.
Morrison’s 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.
‘From the petrol price peak four years ago, the average car driver will have saved £17-a-week, which they can now spend on more enjoyable things than filling up their car.’
The move was welcomed by motoring groups and RAC fuel watch spokesman Simon Williams said: ‘Another promotional cut to enable motorists to buy petrol at under £1 will no doubt bring early Christmas cheer to many, but we would like to see this price being held for longer than three days with oil under $40 a barrel and the wholesale price of unleaded down.
‘As we have said this week we believe that petrol for £1 or under will be a common sight in the run-up to the Christmas.’