Petrol price drops below £1 a litre

Motoring and Travel

Updated on 12 January 2015 | 1 Comment

First time price has fallen below £1 in five years.

The price of a litre of petrol has fallen below £1 for the first time in five years.

The Harvest petrol stations in Birmingham dropped the price to 99.7p over the weekend. According to the RAC, the current average in petrol stations across the nation is around the 109p mark, with some dropping as low as 104p in the last few days. But the Harvest stations are the first to drop below £1.

The global price of oil has fallen sharply in the last couple of months, with the major supermarkets (Asda, Morrisons, Sainsbury’s and Tesco) all announcing fuel price cuts on an almost weekly basis since December.

Indeed, Tesco has announced it will be cutting the price of both petrol and fuel by 2p per litre from Monday afternoon, with Asda, Morrisons and Sainsbury's following suit tomorrow (Tuesday), although Morrisons and Sainsbury's have said their cuts will be "up to 2p".

Asda has a national cap, which means you’ll pay no more than 103.7p per litre for unleaded or 110.7p per litre for diesel at any of its forecourts.

Further cuts to come?

RAC fuel spokesperson Simon Williams said: "With a barrel of oil now costing around $47, we are surely only weeks away from the milestone price of £1 a litre being a common sight at petrol stations up and down the country. This will also have a very positive effect on reducing the average price of both petrol and diesel for motorists everywhere.

"And, as the current over supply of oil is believed to be part of a long-term OPEC strategy to keep oil prices low, there is every reason to think that motorists may well enjoy low prices for some time to come."

The AA was more cautious, saying the Birmingham reductions were a "publicity stunt".

AA president Edmund King said: "There remains a postcode lottery out there when it comes to fuel prices. Drivers in rural areas are still paying much more than the £1.09 average price and in some places £1.18."

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More on motoring:

How to find cheaper diesel and petrol

The best used cars

Car tax changes: what does it mean for you?

ABI: Thousands lying to secure cheaper car insurance

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