Supermarkets cut cost of petrol by 2p as all prices fall again

Brent crude slipped below $55 a barrel in London for the first time since May 2009 today

Supermarkets including Asda said they would reduce their prices by 2p (PA) (PA)

Britain’s four largest supermarkets have cut the cost of fuel again after oil prices tumbled to a six-year low.

Experts predicted that petrol could dip as low as £1 per litre over the coming weeks as Asda, Morrisons, Sainsbury’s and Tesco all said they would reduce their prices by 2p.

The move by the retailers came as the price of Brent crude slipped below $55 a barrel in London for the first time since May 2009. The value of oil has more than halved in recent months as a result of both falling demand and increased supply in areas like the US, which has experienced a boom in shale gas production.

Connor Campbell, financial analyst at Spreadex, said oil’s decline into the New Year had been prompted by a raft of weak manufacturing data last week. He added: “The black stuff is still looking abandoned and lost as 2015’s trading begins in earnest, and continues to be a stain on the worldwide markets.”

Falling oil prices have wiped billions off the value of London-listed companies like BP and analysts fear that spending across the industry could be cut by up to $1 trillion and thousands of jobs lost in the UK. However, Simon Williams, of the RAC, said: “The cuts are bringing us ever closer to the £1-per-litre average for petrol. Of course it would also be an extremely welcome move for motorists and businesses alike.”