Petrol retailers cut pump prices

BP: Opened latest round of price cuts

Petrol retailers have announced cuts in pump prices, following a slide on the oil market.

BP said it is reducing UK forecourt prices for unleaded petrol from midnight by one penny a litre.

Rival oil giant Shell has announced it is lowering prices in many areas, while supermarket giant Tesco has announced a 1p-a-litre cut for low sulphur petrol at its forecourt arm.

And Ray Holloway, of the Petrol Retailers Association, forecast further announcements.

"I think all companies will follow suit," he said.

Some firms, however, said their prices were already "competitive".

Esso claimed its filling stations already sold petrol at the 76p-a-litre price applicable at typical BP pumps from midnight.

Oil price falls

The price cuts follow a decline in oil prices, which on Tuesday came within a few cents of their two-year low.

While oil futures surged after the attacks on the US two weeks ago, over fears that Middle East would lead to supply cuts, prices have tumbled since as attention turned to the stalling global economy.

Analysts believe that a slowdown in industrial expansion will lead to lower demand for oil.

The oil producers' cartel Opec will on Wednesday hold its latest meeting, amid speculation it might order output cuts to support oil prices.