Supermarkets slash 2p a litre off petrol after RAC pressure

Supermarkets slash 2p a litre off petrol after RAC pressure
No more than a day after the RAC urged major retailers to slash petrol costs, a price war has been triggered on supermarket forecourts.

Asda again began the latest round of cuts – hacking 2p a litre from its unleaded charge – and was soon followed by Sainsbury’s and Morrisons, which have offered the same reduction effective from Thursday.

RAC Fuel Spokesman Simon Williams described the speed of the response as “encouraging” and pointed to “good signs that prices could go lower still.”

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On Tuesday, the RAC pointed to September’s 6p-a-litre-drop in the wholesale cost of petrol in urging the UK’s major retailers to pass on savings to motorists.

Less than 24 hours later, Asda showed its hand – bringing its national price cap down to £1.14 per litre in the process.

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."

The RAC’s Mr Williams added: “Despite a similar cut in late September the conditions have been right for a further reduction for nearly two weeks so it's a shame in the interests of price transparency this hasn't come sooner.

“What motorists need now is for every petrol retailer, large and small, to do the same to bring down the average price from £1.19 a litre to £1.17.

“Looking at the wholesale petrol market there are good signs that prices could go lower still.”

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Average unleaded prices across the UK have hit six-month highs of over £1.19 in recent weeks, according to data from RAC Fuel Watch.

Since the end of June, both diesel and petrol have risen in value by 2.5p a litre – and at the end of September both were sitting at their highest value since March.

Unleaded prices shot up as a result of Hurricane Harvey disrupting oil refining in Texas, whereas diesel has become more expensive as the price of a barrel of oil has increased by 10% to almost $60 a barrel.

Copyright Press Association 2017. Motoring News articles do not reflect the RAC's views unless clearly stated.