Supermarket chain Morrisons sparked the latest price war by cutting the price of fuel by 3p a litre across its 285 stations. Rival supermarket Asda and fuel giant BP responded in turn with their own reductions.
Asda cut its fuel prices to 106.9p a litre for unleaded and 118.9p for diesel. And BP said it was dropping its prices by "as much as 3p a litre" at most of its company-owned sites across the country.
Esso joined the war and said it will be reviewing its prices. A spokesman for Esso said fuel sales were a "highly competitive business and we vigorously compete with competition".
Asda trading director Darren Blackhurst called on rivals to match its move in the price war. He said: "We are calling on other retailers to follow our lead and give drivers a fair deal at the pumps, not just those that live near an Asda."
Shell also said it would be passing on the falling cost of oil to its customers
Will it go below £1 again before Mr Brown and Co slap some more Tax on ?