Supermarkets have cut up to 3ppl from their petrol and diesel prices two days after the RAC said there was scope for cuts due to falling oil prices.
Asda announced its cut would take effect from today (Wednesday January 29) and would mean the price across its network would not be more than 120.7ppl for petrol and 124.7ppl for diesel.
Asda senior fuel buyer Dave Tyrer said: “We’re pleased to be dropping fuel prices for the first time this year. January has been a tough month for motorists so we’re glad to be dropping the cost in line with falling wholesale markets. We will continue to put the savings straight back into drivers’ pockets without any vouchering requirements, meaning all our customers, regardless of their budget, will benefit from a price cut at the pumps.”
Sainsbury’s later announced it would be cutting its fuel prices by up to 3ppl from Friday.
The RAC said a sudden fall in demand for oil due to the coronavirus outbreak in China was depressing oil prices.
A barrel of crude oil fell below $60 last Friday and according to the RAC it could fall further as the amount of oil used by China – the world’s second largest oil consumer – plummeted due to people restricting their travel plans.
Oil prices have been volatile this month. Earlier in the month they rose due to tensions between Iran and the United States, but since then oil prices have been declining.
Oil prices have fallen from a high of $69.82 a barrel on 6 January to $59.75 on 24 January. This is the first time oil has been less than $60 a barrel since 31 October last year.