24 August 2015 - Janet Bird
The latest round in the supermarket price wars could see fuel prices fall to less than £1 per litre for the first time in over five years.
The 'Big Four' supermarkets - ASDA, Tesco, Morrisons and Sainsbury's – have all slashed prices at the pump in recent days, and further reductions are likely.
Over the last month, ASDA has cut the price of unleaded petrol by 5p per litre and reduced the price of a litre of diesel by 9p.
Morrisons say their latest round of fuel price cuts means that a litre of unleaded will be 15p cheaper this August bank holiday than it was the same time last year.
The price of diesel has been reducing steadily over the last three months, falling below that of unleaded in August for the first time since 2001.
A huge surge in US oil supply, combined with a decision by the other main oil producing countries, such as Saudi Arabia, not to limit production to keep prices high, means there is an unprecedented global surplus of oil, driving prices down.
And, according to the International Energy Agency, prices have further to fall, with the new low rates lasting well into 2016.