THE dramatic fall in fuel prices at forecourts across the county is good news for hard-working families. The major supermarkets are now embroiled in a price war at the pumps and that can only be of benefit to customers.

The price of a litre of unleaded petrol is now below £1 for the first time in a year.

Drivers of diesel vehicles, however, still feel aggrieved that a fuel many had been encouraged to use is still costing at least 10p a litre more than petrol.

Falls in the price of oil have led to the current cost-cutting at the pumps.

It is disconcerting that it appeared to take a rebuke from the Prime Minister for the drop in oil prices to be reflected on the forecourts.

Energy bills, meanwhile, continue to increase and new figures released yesterday showed how the number of households failing to pay these bills has jumped from 2.5 million to 3.6 million in the last six months.

That is stark evidence, if it were needed, of the impact the huge hikes in electricity and gas prices have had on ordinary families.

The price of oil is dropping but the energy firms will argue the price of wholesale oil and gas remains high.

The reality is that a reduction in energy bills is necessary as the financial crisis begins to affect the real economy and particularly as we head into the winter months.

If the energy firms will not react in the way the fuel retailers have then it may be time for Government action.