The three supermarkets will reduce fuel prices by 2p per litreReuters

UK Chancellor George Osborne has urged energy firms to pass on the fall in oil prices to consumers.

On Twitter, Osborne said it was "vital" for motorists and households to feel the benefit from the 50% plunge in oil prices at the petrol pumps and in their heating bills.

Meanwhile, the Treasury said it was examining whether the government needed to intervene in the way energy companies set heating bills.

On 7 January, oil prices tumbled to fresh five and half year lows with Brent falling to $50.47 per barrel (bbl) while US WTI declined to $47.27/bbl.

In stark contrast to current figures, back in 2013 and 2012 oil prices averaged $100/bbl.

The UK's four major supermarkets have announced they will cut fuel prices by a further 2p this week, bringing the price of petrol closer to £1 a litre.

Tesco, Morrisons, Sainsbury's and Asda all announced they would reduce prices by a further 2p a litre on petrol and diesel.