Petrol is set to fall to a four-year low as a leading supermarket prepares slash its price by 2p a litre.
Asda said it will bring its price for unleaded down to 112.7p a litre tomorrow which will mean it is at its cheapest since October 2010 and down 14p since September this year.
It will also be reducing the cost of diesel by 1p to 118.7p a litre.
The move comes after other supermarkets introduced a number of fuel reductions over the last few weeks amid falling oil prices.
Crude oil is trading at around $63 a barrel, a fall of 40 percent since June as increased US shale production and a refusal by the oil cartel to cut production last week adds to oversupply.
The world's top energy watchdog has put further downward pressure on the price as it slashed its oil demand forecast for next year.
The International Energy Agency said that world demand will grow by 900,000 barrels per day, down 230,000 from its previous estimate.
It said that the cheap oil was not leading to more consumption and in rich countries "a tepid economic recovery, weak wage growth and ... deflationary pressures will further blunt the stimulus of lower prices".
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