Asda, Tesco and Sainsbury's announce petrol price cuts

Three British supermarkets will kick off 2015 by cutting the price of petrol, it has been announced.

Asda, Sainsbury's and Tesco have all revealed that they will be cutting the cost of petrol by 2p per litre, beginning on New Year's Day.

The three leading supermarkets have dropped their fuel prices on several occasions this year, with 2014 being a particularly good year overall for petrolheads.

The average price for a litre of petrol is currently 116.9p, which is 14p cheaper than at the start of the year, according to the RAC, and with the price of Brent crude oil continuing to fall (it stands at $55.91 per barrel), petrol is set to become slightly less costly.

The bloodbath hitting oil prices could bring the cost of petrol down to below £1 per litre, says the RAC, which predicts that petrol will drop to its lowest cost since May 2009 in early 2015.

RAC fuel spokesman Simon Williams said: "What's currently happening at the pumps with falling fuel prices is something many motorists will not remember seeing before.

"Talk of prices going up like a rocket and falling like a feather could not be further from the truth as retailers have been quick to pass on savings at the forecourt."