Supermarket chain Morrisons has cut the price of unleaded petrol to 99.9p a litre while Asda is also following suit, but only for the weekend.
The move is a welcome Christmas boost to motorists and Morrisons say it is the first time any retailer has brought its everyday price down to below the £1 mark since June 2009.
Earlier in the week, the RAC predicted that prices would move below £1 a litre before the Christmas getaway.
But with the oil price tumbling, Morrisons is making the cut two weeks earlier than expected. Asda will be dropping the price of unleaded to 99.7p per litre and diesel to 103.7p per litre from today (Friday) until Sunday. The prices will revert back to 101.7p per litre for unleaded and 104.7p per litre for diesel from Monday.
Bryan Burger, Morrisons Petrol Retail Director, 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.”
Andy Peake, Asda’s Senior Petrol Director said, “For the second time this week we’re giving drivers a festive fuel boost and investing in a further price drop.
We’re adding a further boost by investing in a three day fuel price drop meaning drivers can now benefit from fuel as low as 99.7ppl in the crucial run-up to the festive period”.
“We know our competitors are likely to follow but Asda don’t have a postcode lottery on fuel meaning no matter where customers live, they will benefit from the same fuel price at every single one of our filling stations with our national price cap of 99.7ppl for unleaded and 101.7ppl for diesel”.
RAC Fuel Watch spokesman Simon Williams said: “This is just the news motorists were expecting to hear after we reported this week that wholesale fuel prices were coming down again as the price of a barrel of oil fell below $40.
“Morrisons has delivered this festive saving at their pumps even sooner than we thought and no doubt their forecourts are now going to be very busy with motorists filling up with petrol at an everyday price of under £1 a litre.”
Morrisons is also cutting 1p off a litre of its diesel from tomorrow morning.
Morrisons will hold the price at this new everyday price for as long as possible but it remains subject to changes in oil markets and foreign exchange movements.