FUEL prices continued their steady fall this week as supermarkets drove the market down by lowering the cost of diesel and unleaded.

FUEL prices continued their steady fall this week as supermarkets drove the market down by lowering the cost of diesel and unleaded.

All the supermarkets and Shell offered the best deal on diesel today at 106.9p per litre at some stations, while Morrison's, ASDA and Sainsbury's in Hadleigh Road set the lowest unleaded price at 92.9p.

This included Morrison's in Felixstowe, which beat the price of several Ipswich filling stations, including some other supermarkets.

An RAC spokesperson said: “The supermarkets work differently, they are competitive. There is a price war, people will push their prices down to compete.

“It is the supermarkets who push the prices down. For example, ASDA has dropped its prices by 2p this week. Generally speaking any station near ASDA is going to have to go down to compete.

“As everyone's seen, the price of oil has dropped significantly over the last few months so that should mean there should be significant drops.

“I would expect the price of petrol should be down below 90p per litre by now, but hopefully it is going in that direction.”

The cost of oil continued to drop this week, almost falling as low as $60 per barrel yesterday before rising slightly to $61 this morning.

The proportion of diesel cars being sold hit a record high of 45.6 per cent in October as consumers tried to save money by buying more fuel-efficient cars.

The motor industry announced its biggest sales fall in 17 years yesterday as the new car market dropped for the sixth successive month.

The Society of Motor Manufacturers and Traders said the number of new cars registered in October was 23 per cent lower than last year on 128,352 - a drop of 38,445 vehicles.