At last! Asda’s 2p cut in cost of fuel kicks off petrol price war

SUPERMARKETS have set off a petrol price war just days after they were accused of using Brexit as an excuse to ‘fleece’ motorists.

Tesco, Asda and Sainsbury’s all cut prices yesterday by up to 2p per litre.

It follows the decision by Morrisons to cut the price of diesel by up to 2p a litre last month.

Campaign group FairFuel UK welcomed the move but said it was ‘too little, too late’ for millions of motorists who have been paying inflated prices for weeks.

The wholesale cost of petrol has fallen by 3p per litre since the referendum result on June 24, following a drop in the price of oil.

Despite this, retailers had stubbornly refused to cut prices. This has been a blow to families who have taken holidays in the UK this summer to save money because of the weak pound.

FairFuel UK has estimated that not passing on savings generated an extra £330million in profit for fuel retailers last month.

Motoring organisation the RAC raised fears firms may be exploiting public concerns that fuel costs would go up after Brexit in order to keep prices on hold.

Spokesman Simon Williams said it was a shame the large-scale price drop ‘did not come sooner’, adding: ‘This price cut takes us back to a supermarket price that was last seen in early May.

‘Hopefully other supermarkets will follow suit which will drive prices down across the country.

‘If that happens we should see the average price of both petrol and diesel drop from around 112p a litre to 110p.’

The RAC said there was a ‘compelling case’ for an immediate price cut of 3p per litre. Yesterday, supermarkets caved into pressure.

Asda made the first move, announcing that drivers will pay no more than 105.7p per litre on unleaded and 106.7p on diesel at its 272 petrol stations.

Morrisons followed with its own 2p cut to petrol and Tesco joined in, saying it would also cut prices by up to 2p per litre from 5pm yesterday.

Sainsbury’s then said it would reduce prices by up to 2p at its 303 forecourts from this morning.

Its prices vary widely around the country, with a forecourt in Tonbridge, Kent charging 112.9p per litre, and another in Leigh, Lancashire charging 99.9p.

Howard Cox, founder of Fair-Fuel UK, said the supermarkets’ move would raise pressure on other fuel retailers to follow their example.

He said: ‘Our campaign supporters from UK motorists, hauliers and small businesses across the UK are incensed that in the five weeks since the EU referendum, significant falls in fuel wholesale prices have been ignored by retail- ers.’ He added: ‘I welcome these cuts but it’s not enough and it’s way too late. ‘Independent retailers will probably cut prices too, but just by a penny.’

Yesterday the AA said petrol prices would be at a seven-year low were it not for the sharp fall in the value of the pound.

Petrol, like oil, is denominated in US dollars so becomes more expensive when sterling is weak.

According to the RAC, the average price for both unleaded petrol and diesel is around 112p per litre, with some motorway services charging as much as 127p per litre.

One independent retailer in Chelsea, London, charges 169p per litre and is believed to be the most expensive forecourt in Britain.

‘Not enough and way too late’