Superstores reduce fuel prices after savings row

The UK’S major supermarkets have cut fuel prices after motoring groups claimed retailers were failing to pass on savings following the oil price slump.

Asda was the first, lowering its price cap by up to 2p per litre meaning motorists will pay no more than 111.7p per litre at its filling stations. This was followed by similar price cuts by Sainsbury’s, Tesco and Morrisons.

Last week, the RAC claimed forecourt prices for diesel could be slashed by about 4p per litre while 2p could be taken off unleaded due to a fall in wholesale costs.

Oil dropped to $47 US a barrel on Thursday, down 13 per cent from 23 May.

RAC spokesman Simon Williams said: “The supermarkets have led the way and we now hope for a much-needed price cut chain reaction across the country.

“While the value of the pound has fallen since the election, the price of oil has also reduced, bringing down wholesale fuel costs which should rightly be passed on to motorists at the pumps.”