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Big supermarkets reduce fuel again

All four of the big supermarkets are cutting fuel prices again.

Asda, Morrisons and Sainsbury's are reducing their petrol and diesel by 2p a litre from tomorrow, while Tesco's similar 2p-a-litre cut will take effect from this afternoon.

The reductions mean Asda customers will pay no more than 105.7p a litre for petrol, with diesel being 112.7p a litre.

This is Asda's 14th fuel cut since the end of September, with 21p a litre coming off its petrol price in total and 17p a litre off its diesel.

For Morrisons and Sainsbury's it is the seventh cut since the beginning of December.

The RAC has predicted that petrol could dip as low as £1 per litre, although the AA is more sceptical.

RAC fuel spokesman Simon Williams said today that the latest cuts would further lower the average price of petrol, which is now cheaper than it has been for around five years.

He added: "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."

AA president Edmund King said: "Further drops in the pump price are extremely welcome. However, small rural towns are again being left behind by the price falls in the more competitive areas."

"This continues to feather the fall in the national average. We would love to see £1 per litre and we may possibly see it in many parts of the UK but it is unlikely that the average price will drop as quickly to the £1 level - partly because 70% of the price is tax.

"There is still a price lottery out there so we advise drivers to shop around."

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