Taxi firm boss Ian Brenchley is not happy about the falling price of petrol.

“It is stimulating a bit of competition locally,” said the owner of Z Cars Global in Canterbury, which employs 15 people, including 12 drivers.

“Falling prices means some of our rivals can afford to offer a cheaper fare rather than charging the full whack.”

With the price of unleaded inching closer to dipping below the magic £1 mark, the competition shows no sign of letting up.

Figures released by the AA suggest families are saving £50 a month on fuel, which is good for the back pocket but has put businesses across Kent in a price war.

“The lower cost of fuel means our core prices have gone down considerably, which we try to pass on to customers,” said Chris Leach, co-owner of removals firm S.W. Leach & Sons, based in Aylesford.

“If someone is moving from Kent to Somerset, Cornwall or Scotland, we can be much more competitive.

“It is a very competitive market. You can lose a job for the sake of £50 to £100. People go out and get five or six quotes and there are websites which pitch removals businesses against each other on price.

“The lower cost of fuel is helping us. If the company is going to Scotland, the fuel element can be as much £300 to £500 of the expense.”

With people more willing to fill up as they pay less at the pumps, independent petrol garages are enjoying a surge in volume as they try to compete with cost-cutting supermarkets.

Robert Crouch, who owns an Esso station in Willesborough and Pace garage in Kennington, said: “It has had a really positive effect.

“People are spending less to do the same mileage so you have more money in your pocket at the end of the month.

“We try to keep the same margin whether the price is high or low because competition is so fierce.

“Our tuppence is the same 2.1p to 2.5p a litre whether the fuel price is £1.49 or 99p.

“Everyone wants prices to go down. I would much rather pay £40,000 for a tanker of fuel than £55,000 and the customer is happier paying £1.10 rather than £1.39.”

Even for the price-warring taxi firms, the drop in fuel price brings some obvious benefits.

“Every year petrol prices have gone up so, in a way, this is counter balancing the extreme effect of the downturn and the increase in prices,” said Mr Brenchley, whose firm has been operating since 2000.

“The cost of vehicle maintenance, labour rates and the value of vehicles has all gone up so when you ask whether we are better off, I would just say this is addressing the disproportionate imbalance.”

With analysts still undecided on how long these prices can last, or how low they can go, companies are taking the situation with a pinch of salt.

The rise in oil production by Opec, the group of petrol-exporting nations, shows no sign of slowing as Saudi Arabia tries to hurt US oil producers who are drilling new but more expensive wells.

“It is about how long the Saudis hold out,” said Mr Crouch. “They are trying to beat up the Americans for producing too much.”

Mr Brenchley added: “The volatility in prices doesn’t allow you to make any prudent business decisions. To do so would be economic suicide.”