Motorists have been given a much-needed boost to the New Year after supermarkets across West Norfolk slashed the price of forecourt fuel.
Asda, Morrisons, Tesco and Sainsburys all reduced their petrol and diesel prices by 2p a litre this week.
The reductions mean customers at Asda in South Wootton will pay no more than 105.7p a litre for petrol and 112.7p for diesel. Tesco Extra and Sainburys on Lynn’s Hardwick Industrial Estate have dropped their prices to 106.9p for petrol and 113.9 for diesel.
A global slump in the price of oil and fierce competition between the big four supermarkets has seen the cost of fuel tumble in recent weeks.
Some analysts believe it could now fall below £1 a litre by the end of January – for the first time in six years.
On Wednesday, prices at the Shell garage in West Lynn were 108.9p a litre for petrol and 115.9p for diesel.
A spokesman for Terrington Service Station in Terrington St Clement, where prices were 113.9p and 119.9 respectively, said he could not keep up with the supermarkets.
He said: “There’s only pennies to be made anyway, we just can’t compete. We only drop prices when petrol companies do and we drop it accordingly, but there’s nothing you can do.”
The drop in prices is certainly good news for taxi firms.
Graham Coton, a part-time controller for Lynn taxi company Connect Cars, said: “It’s terrific news for the taxi trade because of the lay out cost of fuel. It makes a big difference.
“Before Christmas I spoke to a lad at Morrisons petrol garage and he believed the cost would drop below £1 a litre in 12 months, but it will be more like 12 weeks. It’s just ironic that fuel prices have come down five months before the elections.”
The latest round of cuts mark Asda’s 14th fuel price drop since the end of September with unleaded and diesel reduced by 21p and 17p respectively.
For Morrisons and Sainsbury’s it is the seventh cut since December.
The cuts come as the price of Brent crude oil this week fell to below $59 a barrel for the first time since May 2009 – and it looks set to continue to drop.
The RAC has predicted that petrol prices could fall below the £1 per litre mark by the end of January.
RAC fuel spokesman Simon Williams said the average price of petrol is the cheapest it has been for around five years.
He said: “The cuts are bringing us ever closer to the £1-per-litre average for petrol.
“It would also be an extremely welcome move for motorists and businesses alike.”