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

The drop is pushed by an unprecedented worldwide surplus in oil, brought on by an enormous improve in US provide on the again of mixed with the choice by different main oil producers corresponding to Saudi Arabia and the remainder of relatively than sacrifice their very own market share to revive costs.

Now Sainsbury’s and Morrisons have done the same, with changes effective from this weekend.

Avishai Moor, Sainsbury’s head of fuel, commented: “Diesel prices reached a record low this summer, so it’s great to now see good news for drivers using petrol cars”.

“Government revenues are expected to see an increase this financial year driven by hikes in excise duties on petrol and diesel as well as an increase in service tax rate to 14 per cent from 12.36 per cent”, IDFC said in a report. “And if Brent Crude have been to maneuver to the 40 US greenback per barrel mark, the prospect of some enterprising retailers promoting gasoline for £1 per litre will make a return”.

Asda’s price cut comes just two weeks after the last, in a move that will be met with cheer from drivers of the country’s 19 million petrol cars.

RAC spokesman Rod Dennis said: “Fuel is a major expense for millions of families in the UK, and these latest cuts are certainly helping to ease that burden”.

This means in the last month drivers have seen a saving of 5p per litre.

By contrast the AA points out how ‘the gap between the price of petrol and less-expensive diesel at wholesale level was not reflected at the pump throughout the spring and most of the summer’.

‘However it is worth remembering that the biggest influence on what motorists pay at the forecourts is not the oil price but taxation’.

“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”.

Morrison’s meanwhile has confirmed that its latest reductions means that unleaded fuel is 15p a litre cheaper than during last year’s August bank holiday, making it £7.50 less expensive to fill up a family auto.