Supermarket chain Morrisons has knocked 2p off the cost of its diesel and unleaded fuels, prompting a new round of price cuts at rival forecourts.
The move, which takes unleaded petrol to 97.9p a litre and diesel to 109.9p, was immediately matched by Asda.
Tesco said it would follow suit at the majority of outlets, and Total announced cuts at some of its forecourts across England and Wales.
Last week Morrisons kicked off a petrol price war by dropping the cost of unleaded to less than £1 a litre for the first time since December 2007.
Retailers have hinted at further price cuts thanks to a slump in the cost of oil, which hit $66 a barrel earlier this month.
Asda trading director Darren Blackhurst said: ‘We expect oil prices to fluctuate in the coming weeks and will continue to pass on cost savings to customers whenever and wherever possible’.
Fuel duty increase
However, motorists may soon see petrol prices rise again. According to reports, there could be a 2p a litre rise in fuel duty by April, with an announcement due before the end of the year.
Motoring industry leaders who met Treasury Minister Angela Eagle ahead of autumn’s pre-budget report said they were left ‘in no doubt’ that a fuel duty rise is planned, the Daily Mail reported.
Ministers are also reportedly pressing ahead with their plans for a new road tax system, which will charge drivers retrospectively based on the CO2 output of their car.
To find out more about how the system works – and how you will be affected – read our guide to the new road tax rules. If you’d like to find out where you can find the cheapest petrol, diesel or LPG in your area, read the Which? guide to finding the cheapest fuel.
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