Petrol costs fall even further after price cut announced

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Fuel prices have been slashed by supermarkets again, with the major store chains taking 2p off the price of a litre of unleaded and a penny off the price of a litre of diesel.

The news will no doubt will be welcomed by the millions of motorists who will be heading out onto the roads this Bank Holiday weekend.

This is the second time that prices have been reduced in a week, meaning that unleaded is now 18p cheaper than it was this time last year.

In comparison, diesel will be 23p a litre cheaper than it was at last year's August Bank Holiday.

Jamie Winter, services director for Morrisons, told the Daily Mail: "We're seeing the price of crude on the world market continue to fall and that, combined with a relatively strong pound, is helping us pass the savings back to motorists."

Along with this, director of the RAC Foundation Steve Gooding told the Daily Mail: "The cost of oil isn't the only driver of what we pay at the pumps, but with crude now trading at its lowest level since March 2009, it is no surprise that the price of petrol and diesel is on the slide."

It is suggested that should the slide continue, motorists may soon be looking at paying under a pound for a litre of fuel.

Gooding added: "This raises further the tantalising prospect that at least some of the nation's 37 million motorists might soon be getting change from a quid when they buy a litre of fuel."

This latest drop in fuel costs could easily spark a price war between the major supermarkets, with prices being driven lower and lower due to fierce competition.