Falling oil prices 'should benefit everybody' - Danny Alexander

The Chancellor, George Osborne, has said the government will be watching petrol and diesel distributors "very carefully" to ensure they pass on oil price reductions to customers.

Oil has fallen from about $115 (£72) per barrel in June to about $84 per barrel, a decline of about a quarter.

In comparison, petrol prices in the UK have fallen from a high of about 131.7p per litre in the summer to 124.22p - a decline of about 6%.

The Chief Secretary to the Treasury, Danny Alexander, told the BBC that a falling world oil price "should be something that benefits everybody at the pump".