Fuel prices are set to fall below £1 a litre.

The boss of Sainsbury’s made the confident prediction as the cost of crude oil fell further, bringing the likelihood of further price cuts within days.

Mike Coupe, chief executive of the supermarket chain, made the prediction as Brent crude was being traded at below 50 US dollars a barrel for the first time since 2009.

And that is good news for drivers, said a Huddersfield fuel expert.

Bernard Stern, of Huddersfield-based independent petrol retailer C J Stern (Oils) Ltd, expects the dramatic fall in pricing to continue for some time to come.

“It won’t be a shortlived issue unless there is some catastrophe or crisis elsewhere in the world.

“The major suppliers in Russia and Saudi Arabia are awash with supplies and want to get it sold.

“The big supermarkets here have 40% of the market and although they may keep prices up for a day or so, they will pass on the cuts to the customers.

“The only worry is that it leads to a deflation effect on the economy as people hold off ordering in the hope fuel prices fall still further. But is is certainly good news for the drivers of Huddersfield”.

The industry benchmark has slumped from 118 US dollars a barrel in June and Chancellor George Osborne has warned it is “vital” that deep cuts in global prices are passed on to consumers at petrol pumps, through utility bills and air fares.

Sainsbury’s is one of four supermarkets to reduce prices by 2p per litre on both petrol and diesel this week.

Asked if he saw fuel prices getting to a pound per litre any time soon, Mr Coupe said: “If the oil price continues to fall, almost certainly. We have certainly seen prices chased down, mainly by the supermarkets. You could feasibly see fuel prices fall below the £1 barrier.”

The energy industry has insisted deep cuts in global prices were already being passed on to customers after Mr Osborne announced a review of the impact on items such as fuel bills, air fares and the forecourt price of petrol.

Ministers said concerned industries were being watched “like hawks” and officials were examining what action might be taken if the fall in the global oil price was not adequately reflected in what the public was charged.