Petrol falls to below £1 a litre

The startling fall in the price of oil is continuing to be seen at the pumps as BP, Asda and Morrisons all cut the price of a litre of unleaded petrol to 99.9p.

Asda is cutting the price of unleaded from 104.9p a litre and slashing the cost of diesel from £116.9p a litre to 110.9p. A litre of diesel at Morrisons has been cut to 111.9p, as was a litre of BP diesel.

Sainsbury's is expected to follow suit and join retailers who are selling petrol for less than £1 for the first time since autumn last year.

The price of oil on world markets fell from a high of around $147 a barrel earlier this year to a 14-month low of around $75.

Asda spokeswoman Jennifer England, said: "This is a welcome boost for consumers at a time of economic gloom and high inflation.

"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."

Prime Minister Gordon Brown said last week he wants the reductions to be passed on to the consumer "as quickly as possible".

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