Tesco drops fuel price

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Commercial Director Richard Brasher said: "We have always said that as the world oil price falls we will pass those savings to customers. Last Friday we led prices down by cutting the cost of fuel by 3p at every store and today we are doing the same again."

Morrisons, Asda and BP this week dropped unleaded to under £1 a litre. But drivers in London were today still facing high petrol prices as forecourts in the capital failed to heed Gordon Brown's call to lower rates.

Texaco's Chelsea Cloisters, in Sloane Avenue, is charging 129.9p a litre for unleaded and 139.9p for diesel. Taxi driver John Hovis said: "The price is high but what can you do?" A spokesman for chevron said the garage was owned independently. A source close to the owner said prices were high to offset rent in the area.