A PETROL price war is bringing some relief at the pump to the region’s motorists.

However, retailers yesterday warned that the falling prices may be short-lived if the pound weakens against the dollar.

Total followed BP, Morrisons and Asda in cutting their petrol prices yesterday as a forecourt war looked set to among retailers.

The company slashed 3p off the cost of a litre of unleaded and diesel fuels across its network of 500 garages in England and Wales.

BP, Morrisons and Asda have all cut their forecourt prices, while Shell and Esso have promised to follow suit.

The price cuts can already be seen on the forecourts across the region.

Morrisons, in Belle Vale, has cut 3p off petrol and diesel while petrol at Asda Aintree is also 3p lower, although diesel is just 1p cheaper.

The BP garage on Greasby Road, Wirral, has reduced petrol by 3p, but diesel remained unchanged, and Texaco on Edge Lane has cut 1p off its petrol price.

AA president Edmund King welcomed the price cuts.

“This is good news for the consumer but also good news for the economy, as high petrol and diesel prices have fuelled inflation to 4.7%,” he said.

The average price of a litre of unleaded petrol yesterday was 112.75p, with diesel at 124.16p, according to the AA.

Earlier this month, the organisation said petrol prices were still too high and the drop in the price of oil was not being passed on to motorists.

Mr King said oil companies had been “too slow” in passing the drop in the oil price on to customers.

The price of crude oil fell below $100 a barrel earlier this week for the first time since April – down around a third from the July peak of 147 US dollars – but the Petrol Retailers’ Association (PRA) said this was not the only factor contributing to prices at the pump.

Ray Holloway, director of the PRA, said fluctuating international currency markets also affect the cost of fuel on the forecourt, and a strengthening US dollar could force retailers to put prices up again later in the year.

He said: “All oil products are priced in US dollars, therefore exchange rate variation impacts on the retail pump price.

“In the US, we’re going to have two important events this year – the Bush administration is going to come out with its plan for turning the economy around, and the other is the presidential election.

“Both of these are likely to strengthen the dollar, which will mean more expensive fuel for the motorist in this country.”

alex.turner