RAC sparks fuel price drop on supermarket forecourts

RAC sparks fuel price drop on supermarket forecourts
Three of the UK’s biggest supermarkets have reduced fuel prices after the RAC called on retailers to pass on wholesale savings to consumers.

Morrisons, Asda and Sainsbury’s have fallen in line after the ‘big four’ supermarkets were urged to lower both petrol and diesel prices, which – with the current exception of Tesco – they have all now done by up to 2p per litre.

The falling pump prices reflect the recent drop in the cost of oil from £50.41 to £46.86 a barrel.

READ MORE: Petrol pump prices hit three-year high

By passing on these reductions, the RAC says Asda, Morrisons and Sainsbury’s have saved motorists on average £1.10 on a full tank of fuel.

RAC spokesman Simon Williams said the organisation is hoping that the action by the three major supermarkets will spark “a chain reaction” prompting even more retailers to lower their prices.

He added the reduction will come as a relief to motorists after fuel costs recently soared to a three-year high.

He said: “Motorists will be pleased leading supermarkets have reduced the price they charge for fuel just a day after the RAC called for a cut. This should spark a chain reaction with other fuel retailers across the country.

“After three months of petrol and diesel going up it’s a relief to see prices at the pumps finally coming down again just in time for half-term when more people will be taking to the roads.”

READ MORE: High fuel prices could be ‘new norm’ in 2018

Oil prices recently slipped back down, thanks in part to the reopening of the Forties pipeline which had been closed since a crack was found late last year.

Mr Williams explained: “The falling price of oil has paved the way for these latest forecourt fuel cuts.

“This is due to the United States reaching record highs in crude oil production and a glut of fuel in storage when demand is lower, together with the North Sea’s largest oil pipeline coming back online after being closed for repairs since December.”

Copyright Press Association 2018. Motoring News articles do not reflect the RAC's views unless clearly stated.