As world oil prices plunge, the “big four” supermarkets Asda, Sainsbury’s, Morrisons and Tesco are all reducing their petrol by 2p a litre and their diesel by 1p a litre from today.
The Asda cut means its customers will pay no more than 110.7p a litre for petrol, with the company’s diesel costing 117.7p a litre.
On September 28, Asda’s petrol price was as high as 126.7p a litre, with diesel at 129.7p a litre.
Chairman of Dundee Taxi Drivers Association Graeme Stephen believes the savings will provide a boost for cabbies and their customers.
He said: “Apart from our car and insurance, our fuel is one of our biggest outlays. The last few years petrol prices been steadily increasing and we’ve had to put the fares up because of this.
“Now this is coming down, we will not be having a fare increase for next year.
“If the fuel is coming down in price then we’re not spending so much on petrol and the punter is not going to pay out more money.”
The RAC has said that petrol could dip below £1 a litre in the new year, which would take prices at the pumps to their lowest level since the end of May 2009.
RAC fuel spokesman Simon Williams said: “What’s currently happening at the pumps with falling fuel prices is something many motorists will not remember seeing before.
“Talk of prices going up like a rocket and falling like a feather could not be further from the truth as retailers have been quick to pass on savings at the forecourt since we forecast on December 6 that prices were due to come down by 7p a litre for petrol and 6p for diesel.”
But AA president Edmund King was more cautious.
He said: “With duty on each litre of fuel at 57.95p and VAT around 20p, plus the pound at its lowest level against the dollar for three months, it would take another almighty drop in crude prices to reach £1 a litre at the pumps.”