The price of petrol has fallen to below the pound mark for the first time since December last year. In summer this year, prices for one litre elevated to beyond £1.10 and £1.20, for unleaded and diesel fuels respectively.

Supermarket and petrol providers, ASDA and Morrisons were the first to lower the prices to 99.9 pence per litre and it has been said that other petrol providers including BP will follow suit. This may be of great interest to car insurance customers as the cost of motoring can drop quite immensely.

The car insurance provider, the AA said that the ‘price war’ would work in favour of millions of motorists, with two car families be able to save around £40 per month on fuel prices from the price cuts, compared to their costs in July this year.

Edmund King, the AA president said: “We suspect that these new prices are right on the edge, if not below the point that retailing petrol remains profitable. This will be hard for other retailers to match.”

The lower fuel prices have also rippled out to airline travellers as the lower fuel prices have meant lower airline tickets, with some long-haul journeys falling from £218 down to £192.