Big price cut coming at the pumps

Retailers passing on lower wholesale costs

Supermarkets have announced fuel price reductions after being accused of not passing on savings from lower wholesale costs.

Asda, Sainsbury’s and Morrisons said they will cut the price of their petrol and diesel by up to 3p per litre.

Asda will implement the cut on Thursday followed by Morrisons on Friday and Sainsbury’s on Saturday.

It is Asda’s third petrol price reduction in less than three weeks, bringing the cost down by up to 8p per litre.

RAC fuel spokesperson Simon Williams said price cuts have been “an extremely long time coming” with petrol and diesel reaching a four-year high in recent months.

He went on: “There is finally some respite for hard-pressed diesel drivers from seemingly neverending price rises with a sizeable but very much warranted price cut.

“The cost of buying petrol on the wholesale market has dropped like a stone so we should be looking for at least 5p to come off the average price of unleaded at the pumps.

“We believe Christmas has come early for fuel retailers this year as they have been reaping the benefits of the biggest margins on fuel the RAC has seen in almost four years.”

Over the past six months, the cost of filling up a typical 55-litre family car has risen by around £6.

The average cost of petrol at UK filling stations dropped by just over 1p per litre in the past week to £1.29, according to Government figures.

Owners of diesel vehicles have been hit by price rises for 19 consecutive weeks, reaching an average of £1.37.