A PETROL price war could save Sussex families more than £150 a year.

Supermarkets have dramatically dropped their prices over the past two days, putting prices at their lowest for four years.

Sainsbury’s led the way when it cut the price of petrol and its diesel by up to 5p a litre.

The Portslade branch is selling unleaded for 124.9p a litre and diesel for 128.8p a litre.

Both Asda stores in Brighton followed suit slashing unleaded to 124.7p a litre and diesel to 128.7p a litre.

Tesco also announced it was cutting fuel by 5p a litre. At the Shoreham branch unleaded was selling for 126.9p and diesel at 129.9p.

The Office for National Statistics calculated that the average family spent £24.70 a week on petrol and diesel in 2012.

In February 2012, The Argus reported record fuel prices with unleaded reaching 141p a litre in parts of Sussex.

If prices stay at today’s four year low of 124.7p a litre, families would pay just £21.82 a week on fuel – a saving of £154 a year.

AA spokesman Luke Bosdet said: “A 5p cut in the price of petrol, lopping £2.50 off the cost of filling a typical fuel tank, will be particularly welcome as families get back to school runs and into their autumn routines.”

The county's taxi drivers will spend around £6.50 less on fuel this week than last week.

Managing director of City Cabs Andy Cheesman said: “This can only be good news.

“It’s good for taxi drivers, it’s good for buses, it’s good for families, it’s good for business.

“The knock on effect for deliveries and food prices will be good too.

“My only concern would be that prices stay down, as quite often the prices go down but then creep back up.”

There was still a large discrepancy between fuel prices at filling stations just a few miles apart.

At Local Fuels on the A27 near Lewes unleaded was still at 127.9p and diesel at 131.9p.

A manager, who did not wish to be named, said: “We don’t make the decision on the price here. It comes from head office.

“We haven’t put our prices down yet but I’m sure we will follow suit.”

RAC fuel spokesman Simon Williams said: “Motorists have been enjoying some of the cheapest prices for over three years, but this cut will take us to a new low, the likes of which we haven’t seen since late 2010, or early 2011 when the price of petrol and diesel unfortunately jumped by 10p a litre in just a few months.

“It’s great news for motorists that this is being swiftly passed on by responsible retailers at the pumps.”