Petrol price forecast to fall to just £1 a litre

THE cost of fuel has been tipped to drop to £1 a litre after falling oil prices led to supermarkets slashing the cost of unleaded petrol by 2p a litre.

Asda, Tesco and Morrisons have introduced the price cut across their forecourts, and Sainsbury’s is set to do the same today.

Asda said it would be giving motorists a “weekend boost” that will see customers pay no more than 109.7p per litre across its 272 filling stations. It means that in the past month, Asda has cut the price of unleaded by 5p per litre and diesel by 9p.

RAC spokesman Rod Dennis said: “The reason we’ve been slower to see unleaded price cuts is because the wholesale price of petrol – the price retailers buy the fuel for – has not fallen at the same rate diesel has.

“Diesel has been on a steady downward path since the start of May, driven by increased capacity from Asia, but the same cannot be said for petrol.

“If the conditions stay right, we could see some even lower prices in a few weeks as people return to work after the summer and the school run begins again. And if Brent Crude were to move to the $40 per barrel mark, the prospect of some enterprising retailers selling fuel for £1 per litre will make a return.”

He added: “The heat has really been taken out of the cost of motoring this summer, with the big four supermarkets now selling unleaded and diesel for considerably less than in recent months.

“Drivers should be noticing cheaper fuel across the UK, with some independent retailers also proving to be fiercely competitive when it comes to price.

“While we think there is potential for more movement on prices in the coming weeks, it is positive that all motorists are now benefiting from the plummeting price of oil.”