Petrol pump
UK petrol prices heading toward £1 a litre as wholesale prices dropReuters

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.

Asda was the first to announce a price cut on Monday morning and was swiftly followed by fellow supermarket giants.

Tesco's reduction was effective immediately, while its rivals will cut prices from Tuesday January 6.

The price British consumers pay for petrol has come down significantly in recent months as wholesale prices have fallen.

The changes are being driven by the price of crude oil, which has fallen spectacularly since the summer of 2014 when it reached $115 a barrel.

A barrel of Brent crude was trading at around $55 on Monday afternoon.