Tesco stole a march on its major supermarket rivals this morning by announcing it is to cut the cost of petrol and diesel by 2ppl at all of its petrol stations this afternoon.
The fuel price cuts claimed by supermarkets earlier this week have been patchy, and in many cases below the 2ppl headline figure, according to the AA, which says non-supermarket retailers are undercutting superstores in some locations.
The four major supermarkets all announced price cuts of 2ppl on unleaded petrol and diesel effective from Tuesday March 14.
After two months of rises at the pumps, the price of petrol and diesel stabilised in February, according to RAC Fuel Watch data.
A quarter of drivers (24%) are restricting their car use and one in seven (14%) is cutting back on non-fuel spending after average UK petrol prices rose to 120ppl and diesel to 122ppl at the beginning of February.
Independent dealers have been praised by the AA for seizing the chance to undercut the fuel prices of the Big Four in its latest Fuel Price Report.
The prices of petrol and diesel at the pumps increased by 2ppl in January to their highest for more than two years despite the wholesale cost of unleaded staying the same and diesel reducing, according to the latest RAC Fuel Watch report.
Prices at the pumps have hit an 18-month high and the PRA is warning they will rise further as the effects of higher wholesale prices kick in.
The price of unleaded petrol and diesel at the pumps fell for the first time in four months in November, according to the latest data from RAC Fuel Watch.
Pump prices could rise to 120ppl following the OPEC meeting in Vienna and news that production will be cut by 1.2 million barrels a day. City analysts estimate the decision will see Brent Crude heading towards US$55/barrel.