Asda has sparked a round of price cuts by the supermarkets with a 2ppl reduction on the price of unleaded petrol, effective from today.
The retailer’s new national fuel price cap means that Asda forecourts across the country will charge no more than 122.7ppl on unleaded petrol.
Asda’s senior fuel buyer, Dave Tyrer, said: “Further decreases in the wholesale market mean we are able to reduce our prices again, seeing our unleaded price dropped by up to 5ppl in just under two weeks.”
Shortly after Asda’s announcement Morrisons and Sainsbury’s unveiled similar reductions. Morrisons said its 2ppl reduction on unleaded petrol would take effect tomorrow, and Sainsbury’s revealed it would cut the price of unleaded petrol by up to 2ppl from Thursday November 8.
The RAC welcomed the price cuts. Fuel spokesman Simon Williams said: “This is excellent news for motorists as it should spark cuts from all retailers bringing the price of petrol down nationwide from its current average of 130.46ppl. But this is sadly long overdue given the fact the wholesale price of unleaded has been low enough for a significant reduction at the pumps since mid-October.
“Retailers have not played fair with drivers in a falling wholesale market. Asda was the only big four supermarket to cut the price on the forecourt but even that didn’t happen until late in October, while Tesco chose to offer 10p off a litre to customers who spent a certain amount in store.
“When wholesale prices drop retailers should pass savings on to all motorists by cutting their pump prices sooner. This is vital to the UK average price as supermarkets are so influential in fuel retailing they need to drop their prices for others to follow around the country.
“There is also better news on the horizon for diesel drivers. While diesel has risen substantially to an average of 136.79ppl, and unfortunately still appears to be going up, it should now begin to reduce as the wholesale price has started to fall.”