Fuel price war triggered after retailers cut prices

Fuel price war triggered after retailers cut prices
After weeks of wholesale fuel reductions that haven't been passed on to drivers at the forcourt, supermarket giants are finally reducing their prices.

The initial reduction, which comes after weeks of high prices, is due to Asda's new national fuel cap which means that motorists will now pay no more than 122.7p per litre at its 319 stations nationwide. Morissons, Sainsbury's and Tesco later enacted their own price cuts of up to 2p per litre.

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Motorists will be hoping that these reductions will continue to benefit them by sparking a 'fuel price war' amongst retailers, each trying to undercut their competitors.

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

Asda's senior fuel buyer, Dave Tyrer, said: "Our new national price cap of 122.7p per litre will be welcomed by the millions of drivers across the UK.

"Further decreases in the wholesale market mean we are able to reduce our prices again, seeing our unleaded price dropped by up to 5p per litre in just under two weeks.

SEE ALSO: Petrol and diesel prices | RAC Fuel Watch

RAC fuel spokesperson Simon Williams said: “This is excellent news for motorists and should finally bring the price of petrol down nationwide from its current average of 130.46p a litre. But this is sadly long overdue given the fact the wholesale price of unleaded has been low enough for a significant reduction at the pumps since mid-October.

“Retailers have not played fair with drivers lately in a falling wholesale market. When wholesale prices drop retailers should pass savings on to all motorists by cutting their pump prices sooner. This is vital to the UK average price as supermarkets are so influential in fuel retailing they need to drop their prices for others to follow around the country.

“There is also better news on the horizon for diesel drivers. While diesel has risen substantially to an average of 136.79p, and unfortunately still appears to be going up, it should now begin to reduce as the wholesale price has started to fall.”

READ NEXT: The Budget 2018: what does it mean for drivers

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