Asda leads the way as stores cut price of fuel
ASDA has slashed fuel prices following claims that retailers were refusing to pass on a drop in wholesale costs.
The supermarket giant has reduced the price of unleaded by up to 3p per litre and diesel by up to 2p.
The new national price cap means drivers will pay no more than £1.25 per litre for unleaded and £1.28 for diesel at its 318 filling stations.
A spokesman said they should be 124.7 on unleaded and 127.7 on diesel at the Asda store on Bradford Road, Brackenhall.
And Sainsbury’s and Morrisons were quick to follow Asda’s lead. From today, Sainsbury’s is cutting the price of unleaded petrol by up to 3p per litre and diesel by up to 2p per litre across its 311 forecourts.
Morrisons also confirmed it will be cutting the cost of unleaded and diesel by 3p and 2p per litre from today at its 333 filing stations across the UK.
Tesco then cut its petrol and diesel by 2p per litre, which came into force at 5pm last night.
But hard-pressed motorists are still under the cosh as petrol prices hit their highest since October 2014.
The near 5p per litre petrol price rise between April and May 2018 is the only real upward pressure on inflation.
Drivers have suffered a rise in fuel prices almost every day since the end of April despite wholesale costs coming down by around 2.5p per litre since May 24.
The RAC says recent falls in wholesale costs have been caused by the US drilling for more oil than in recent years, increased output from Russia and speculation that oil producing group Opec will end its restriction on production.
On Monday, average UK forecourt prices stood at £1.29 per litre for unleaded and £1.33 for diesel – the most expensive both have been since September 2014.
Asda chief executive Roger Burnley said: “We know that the cost of living is centre of mind for our customers and we will always do whatever we can to reduce that burden.”
RAC spokesman Rod Dennis said: “At last, retailers have done the right thing and started to cut prices at the pumps. From our data, we could see no justification for them holding on to savings that they have been benefiting from for three weeks.
“With petrol prices rising at their fastest rate in 18 years last month, millions of households and businesses will have been feeling the effect of having to spend more on what is an essential purchase for many. Today’s cuts should bring some welcome relief.
“It is absolutely right that at times when wholesale prices are falling, forecourt prices follow suit.”
The AA welcomed the move with its price specialist Luke Bosdet saying: “Yet again, it takes Asda to lead pump prices where other forecourts should have been going.
“And with a national pricing strategy that guarantees motorists the same treatment wherever they are in the UK, it shows up supermarket rivals who are driving their customers mad by charging up to 11p a litre more for fuel between their own sites.”