Motorists in Huddersfield are now able to take advantage of the lowest petrol prices for nearly four years.

In the face of plunging international oil prices, four leading supermarkets – all with petrol stations in the town – have announced they are cutting 1p a litre off their petrol and diesel.

The Tesco reduction took effect yesterday while the cuts at Asda, Sainsbury’s and Morrisons will all be introduced today.

In Asda’s case, prices will fall to 119.7p a litre for unleaded and 123.7p for diesel.

Tesco, the country’s biggest fuel retailer with 500 filling stations, said: “This means more motorists can make real savings. This is part of our continuing efforts to pass on savings to customers and help bring down the cost of living.”

Mark Todd, petrol director for Bradford-based Morrisons with more than 300 petrol stations, said: “Prices at Morrisons have been coming down steadily and we have brought prices down even further today at most of our petrol stations.”

Sainsbury’s, which has 296 fuel sites, said: “We always aim to offer our customers the very best value on everything we sell and that’s why we’re dropping the price of unleaded petrol and diesel by 1p per litre at all our petrol stations.”

Across all retailers in Huddersfield, average prices now stand at 122.7p for unleaded and 124.9p for diesel.

Supermarkets have steadily reduced pump prices in recent weeks and the new prices will be the lowest since January 2011.

Pete Williams, head of external affairs at motoring group the RAC, said: “We welcome the move today by some fuel retailers to cut the price at the pump and hope others will follow suit swiftly.

“Motorists will be delighted to see the price of unleaded dropping below £1.20 for the first time in four years, but the RAC is calling for a further 4p cut in unleaded and 2p cut in the price of diesel to be fair to motorists.”

The supermarket price cuts come as oil companies were warned that the Government will be “watching very carefully” to make sure the fall in the price of crude oil is passed on to motorists at the pumps. Brent crude slumped to $82 a barrel earlier this week, its lowest level in just over four years.

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Treasury Chief Secretary Danny Alexander demanded an assurance from the major players in the industry that they are doing all they can to pass on the benefits of the slump in global oil prices to consumers. He said people would “rightly be angry” if they felt prices were not coming down as much as they should.

Campaigners said the Government itself had not done enough to help motorists – with tax still accounting for the largest share of prices at the pump.

RAC Foundation director Prof Stephen Glaister said: “It is encouraging that Mr Alexander shares the concerns of the nation’s drivers, but in a way he is passing the buck. The biggest driver of pump prices remains the Government. Well over 60% of the price is tax – and that share could rise sharply with the reintroduction of the fuel duty escalator.

“Though the Chancellor has said he will freeze fuel duty until the election, he has also committed to hikes in duty above the rate of inflation if the oil price falls to $75 a barrel. Which is it to be?”

Shadow chief secretary to the Treasury Chris Leslie said: “Of course it’s right that drivers should benefit from falling oil prices with lower prices at the pumps. But since 2011 people have paid 3p more on every litre of petrol because the Lib Dems broke their promise and backed the Tories in raising VAT.”