Fuel costs cut after hurricane causes price hike

Fuel costs cut after hurricane causes price hike
The cost of supermarket fuel has dropped again after it rose following Hurricane Harvey.

Prices of unleaded petrol rose temporarily after Hurricane Harvey disrupted oil refining in Texas.

Diesel prices have also risen as the price of a barrel of oil increased over the past week.

But now Asda has cut of up to 2p per litre (ppl) for unleaded and 1ppl for diesel. This puts its national price cap down to almost £1.16 per litre for unleaded and £1.17 for diesel.

Following in its footsteps was Sainsbury's, which matched the price reduction. Morrisons has also announced plans to cut the cost of both fuels by up to 2ppl.

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The rise following the extreme weather in the US pushed average unleaded prices in the UK to a six-month high of £1.19, according Department for Business, Energy and Industrial Strategy figures.

Diesel prices rose to £1.21 - the highest since early May.

RAC fuel spokesman Simon Williams said: "This is some very welcome relief for motorists who have suffered a 3p a litre rise in the average price of petrol since mid-August as a result of Storm Harvey hitting the US Gulf Coast and disrupting refineries.

"Motorists are now paying nearly 120p a litre for unleaded, the highest since March, while the average price at the big four supermarkets is 117p.

"This latest cut from the supermarkets should force forecourt reductions across the country, hopefully bringing prices down by 2p a litre everywhere.

"Strangely, this has all come at a time when the oil price has increased by around 7 US dollars (£5) a barrel since mid-August, but it is the strengthening of the pound to 1.35 US dollars that has made the big difference as fuel like oil is traded in dollars."

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Asda's head of petrol trading Dave Tyrer said: "Today's latest move shows that Asda is once again leading the way in reducing the price at the pumps following recent sharp increases caused by hurricanes Harvey and Irma.

"At a time when many garages and supermarkets are charging in excess of 120.9ppl, Asda's new price cap of 115.7ppl on unleaded and 116.7ppl on diesel will be welcomed by the millions of drivers."

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