Petrol prices slashed

THE COST of filling up with petrol tumbled today after supermarket chains slashed their forecourt prices. Asda, Sainsbury's and Morrisons said they would cut the price of a litre of unleaded petrol to 79.9p, a drop of up to 3.5p. A litre of diesel is reduced to 83.9p. The cuts follow weeks of falling oil prices on the world's energy markets.

Morrisons, which also owns the Safeway chain, made the first move early today, announcing that all 289 of its forecourts would be cutting their prices.

Phil Maud, Morrisons petrol filling stations director, said: 'The cost of crude oil and refined product has fallen in the last few days and we are ensuring our customers reap the benefit by passing on the saving quickly.'

Rival chains Sainsbury's and Asda immediately said they would match the reductions. 'We are committed to offering the lowest prices,î said a Sainsbury's spokeswoman.

An Asda spokeswoman said: 'We are starting to lower prices to 79.9p a litre for unleaded fuel from today and should complete the job at all our petrol stations by tomorrow.'

The move is the second piece of good news for motorists. Chancellor Gordon Brown last week said he would not go ahead with a planned 1.9p-a- litre fuel duty hike because of oil price volatility.

It follows a year of spiralling forecourt prices. In some of the most expensive locations in central London a litre cost as much as £1.12.

Prices on the world's energy markets have tumbled nearly a quarter since the start of November as stockpiles have grown.