Asda cuts fuel prices after RAC calls for action

Asda cuts fuel prices after RAC calls for action
Asda has led the way in reducing prices at the pump after three months of steady rises.

The supermarket has cut the cost of both petrol and diesel by 2p a litre in a move that will hopefully encourage fuel retailers across the country to follow suit.

The RAC said the fuel reduction will come as a “relief” to drivers after petrol prices hit a three-year high last week, and hopes a “chain reaction” of reductions will be sparked across the country.

READ MORE: How to keep driving costs down in 2018

RAC fuel spokesman, Simon Williams said: “Motorists will be pleased Asda has led the charge on reducing the price of fuel just a day after the RAC called for a cut.

“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.”

On Asda forecourts the price of unleaded is now 118.7p per litre with diesel costing 119.7p per litre.

The cut comes after oil prices slipped 2.5% – due in part to the reopening of the Forties pipeline which had been closed since a crack was found late last year.

Mr Williams added: “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.”

The RAC recently called for retailers to do more to pass on wholesale fuel savings to consumers.

READ MORE: Higher fuel costs could be ‘new norm’ in 2018

Last week Mr Williams said: “We urge fuel retailers to be fair to motorists and pass on the current savings in the wholesale price of petrol and diesel at the pump.

“Reflecting downward movement in wholesale prices on the forecourt, however small, is important for retailers as motorists generally believe there is little transparency in the price of fuel, unless of course costs are on the up when they understand all too well they will quickly be paying more to fill up.”

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