Some good news! Tesco cuts petrol price by 3p

Supermarket giant Tesco said it was cutting the cost of petrol by 3p a litre today as oil prices fell to their lowest level for a year.

The retailer is lowering unleaded and diesel by 3p across its 430 UK forecourts with immediate effect. It follows a penny cut by rival Asda at the start of this week, and price drops made by a host of retailers last month.

Light, sweet crude for November delivery on New York Mercantile Exchange - the world's benchmark price - tumbled as low as 82 US dollars a barrel in early trading today, the lowest price since mid-October last year.

Mounting fears of a global recession, which will weaken oil demand, have seen the price fall in recent days. Nymex crude is now 44 per cent cheaper than the 147-dollar high hit in July.

London November Brent futures also fell below 80 dollars a barrel.