A tank of fuel now costs an average of £10 less than in July 2008.

Supermarkets ASDA and Morrisons have dropped the price of petrol to 99.9p per litre, following the dramatic decline in the price of oil. 

The cuts – made at the stores’ combined 457 forecourts – mark the first time prices have dropped below £1 in 2008.

The cuts are possible thanks to the fact oil prices have fallen 18% year-on-year. Brent crude oil has fallen to $68 a barrel today – 51% lower than the record $147.27 a barrel in July 2008.

The 99.9p price level means a tank of fuel now costs an average of £10 less than in July – news that will be welcomed by consumers.

ASDA trading director Darren Blackhurst said: “We are committed to delivering the best value to customers across the board and we review our prices daily to achieve this. Drivers should not be paying more than 99.9p a litre for unleaded fuel based on current oil prices.” 

Marc Bolland, Chief Executive of Morrisons, commented: “The price of crude has fallen in recent days and, yet again, we’re passing this on to our customers before anyone else. It shows that we’re absolutely committed to delivering real value for all of our customers – whether they’re shopping in our stores or filling up at our forecourts.”

Tesco has not yet followed the supermarkets’ lead, however it did cut the cost of fuel by 3p per litre last week – despite this, its petrol prices are still around the 103.9p mark.

By Natasha Piscitelli