Unleaded petrol below £1 a litre

The average price of a litre of unleaded petrol has dipped below £1 for the first time in almost a year, figures suggest.

The price, calculated from a study of petrol stations across the UK, has hit 98.63p while diesel has fallen to 111p, Experian Catalist said.

The last time a litre of unleaded fell below £1 was on 5 November 2007. It reached a peak of 119.7p on 17 July.

The plunging price of oil has prompted a petrol price war among supermarkets.

On Friday some supermarkets, including Tesco and Asda, cut pump prices further while Sainsbury’s and Morrisons also reduced prices.

Petrol company Total follow suit by slashing its own prices.

Industry observers say that supermarkets can afford to sell fuel at a loss to try and lure customers into their stores – a luxury they argue that independent retailers cannot afford.