Supermarkets slash petrol prices

Supermarkets slash petrol prices

The RAC believes the cost of unleaded petrol could soon retreat towards the six-year average low recorded at the beginning of the year

Asda has cut the cost of unleaded by 2p per litre, and has also frozen diesel prices.

But that's not all. Motorists filling up at the supermarket's forecourts across the country will pay no more than 105.7p for a litre of unleaded and 107.7p for diesel thanks to its decision to introduce a national price cap.

RAC fuel spokesman Simon Williams says: "This should also have the very positive effect of reducing prices from other retailers around the country.

"Hopefully this will drive the average price of a litre of unleaded down well below its current level of 111p, back towards the six-year average low of 106p a litre we saw in January."

The likes of Sainsbury's, Tesco and Morrisons have already announced plans to drop the price of unleaded by up to 2p per litre. It means others could be forced to follow suit over the coming months.

"This is yet more good news for petrol car drivers who have enjoyed prices coming down in August as a result of a barrel of oil staying around or below 50 US dollars since the end of July," adds Mr Williams.

"It's very encouraging to see savings in wholesale petrol being quickly passed on to motorists at the pump."

Copyright Press Association 2015