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Petrol prices back at 2006 levels

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Petrol prices are now back to 2006 levels - unleaded 85.9, diesel 97.9p - in places thanks to aggressive forecourt price cutting, reports the AA.

Total has followed Sainsbury's 2p-per-litre price cut at its 500 petrol stations in England and Wales, undercutting the latter`s 86.9p for petrol of two years ago.

This compares with the average of 89.1p a litre for unleaded petrol and 101.23p for a litre of diesel that motorists were being forced to pay until recently.

An AA spokesman said: "What we are seeing is a response to the supermarkets trying to get customers into their stores. They are having a torrid time.

"The non-supermarkets are also competing very aggressively because a lot of their station owners are also running small shops.

"For many of those, the fuel is taking on the same significance as newspapers for newsagents - they don't make much profit but the money is made on other sales."

© Press Association 2008