Asda has cut is fuel prices with petrol price cap down 2ppl to 116.7ppl and diesel down 1ppl to 118.7ppl from this morning. When previous cuts have been made the other supermarkets have followed within hours.
Dave Tyrer, Asda’s head of petrol trading, said: “We’re once again leading the way and reducing the price of fuel as costs continue to fall. We’re the only multiple fuel retailer to have prices below 120ppl for both unleaded and diesel meaning motorists will save no matter which Asda petrol station they shop at.”
The move came one day after the RAC urged the supermarkets to knock another 2ppl off petrol and diesel following further reductions in the wholesale cost of fuel.
Last week they responded with cuts of varying levels price cuts in the wake of well-publicised RAC demands, with Asda leading the way with an initial 2ppl reduction.
However, the RAC claimed that while its pleas have helped bring costs down, the effect has not been as powerful as it could have been because of the way supermarkets price their fuel in different parts of the country.
Figures show that the average price paid for supermarket fuel reduced by just 1ppl, with petrol moving from 119.46p on February 8 to 118.46ppl on February 13, while diesel went down from 121.83ppl to 120.84ppl.
Ultimately the average price of fuel paid across all UK forecourts had hardly changed, reducing by around 0.5ppl to 121.53ppl for unleaded and 124.21ppl for diesel.
With the price of oil – at $61.46 – its lowest price since mid-November, and sterling/dollar exchange slightly stronger ($1.38), these factors pave the way for deeper forecourt price cuts, according to RAC fuel spokesman Simon Williams.
“In order to be fair to motorists the big four supermarket fuel retailers should really make further cuts as the wholesale price is still falling. There is clearly scope for both petrol and diesel to be slashed by another 2p a litre at least. We hope they are not resting on their laurels, thinking they’ve done enough to keep motorists quiet by announcing some cuts last week when the wholesale price continues to go lower and lower.
“Unfortunately, despite the supermarkets announcing cuts, RAC Fuel Watch data clearly shows that the average price of fuel sold at supermarkets hasn’t yet gone down by that much. This goes to show that several supermarkets operate regional pricing models rather than charging their customers the same price wherever they are, or indeed having price caps which guarantee customers pay a set amount or lower wherever they are in the country.
“This is very important for the UK average prices as it means other retailers near to supermarkets don’t have to respond to their rivals’ lower prices. We believe this is why the UK average fuel price hasn’t gone down as much as it really should have.
“For that reason we also urge all fuel retailers to reduce their prices, however we do realise that it is not as easy for smaller operators as they do not sell the same volumes that the supermarkets do. This is why it takes longer for reductions in the wholesale price to filter through to all the country’s 8,400 forecourts.”