The price of unleaded has fallen to below 110p per litreReuters

The average cost of unleaded petrol has reached a five year low after it fell to below 110p per litre.

Information group Experian Catalyst reported that the mean cost fell by 1p from Wednesday to Thursday (8 January), to reach a five-year low of 109.8p – its lowest price since 3 January 2010.

Towards the end of 2014, motoring group RAC had predicted that, with the price of Brent crude oil continuing to fall, petrol prices could fall below £1 a litre.

The start to the New Year has continued in a similar vein to the end of the last when petrol prices fell by 10p in December.

Asda, Sainsbury's and Tesco announced on New Year's Eve that they will be cutting the cost of petrol by 2p per litre, starting on 1 January.

Asda then bettered this, slashing another 2p off its fuel prices on 6 January.