Asda leads latest petrol price cuts

Asda leads latest petrol price cuts

Asda has sparked a likely supermarket forecourt price battle by announcing a cut in the cost of its fuel.

As world oil prices plunge, Asda is knocking 2p a litre off its petrol and diesel from Saturday. This means drivers will pay no more than 117.7p a litre for petrol and 121.7p for diesel.

RAC fuel spokesman Simon Williams said: "As OPEC decided not to cut production yesterday, the Brent crude price dipped to a $70.68 a barrel at the end of the day which is the lowest it's been since June 2010. This means there will be more oil in circulation than there is demand.

"The result is excellent news for motorists this Christmas with the cheapest forecourt prices for four years.

"But if retailers are truly going to reflect the wholesale price savings, today's cuts should be the first of several in the coming weeks. We believe pump prices should fall by well over 4p a litre in the next few weeks, taking the average price of petrol considerably below the 120p a litre mark which last happened on 1 December 2010."

The UK economy has already benefited from low fuel prices pegging back inflation.

But petrol companies are coming up against pressure to ease motorists' financial burden still further by doing more to filter through these lower costs on their forecourts.

Anyone buying a car knows that the cost of petrol or diesel is one of the biggest outlays they face. But pump prices have remained stable in recent months.

Drivers could take further heart by oil leaders' announcement in Vienna that they won't be cutting production, despite the slump in crude oil prices.

Copyright Press Association 2014