Unleaded petrol prices are being cut by 2ppl across supermarket forecourts, but the price of diesel, which has plummeted 9ppl in the past month, has remained unchanged.
After Asda announced it was cutting unleaded petrol by 2ppl today (August 21), Tesco rapidly responded with a cut with effect from 1pm, Morrisons said it was implementing a cut of up to 2ppl from 2pm, and Sainsbury’s said it would be implementing its 2ppl cut from tomorrow.
The cut means Asda’s new national price cap on unleaded petrol is 109.7ppl. Diesel remains at 106.7ppl.
RAC spokesman Rod Dennis said: “It is welcome news that all motorists are now benefiting from the plummeting price of oil. Brent Crude is now nearly 25% cheaper than it was two months ago, and is just half a dollar from being at its lowest price all year. This, combined with a relatively strong pound against the dollar, is a recipe for lower prices at the pumps – and that is something that is now benefiting drivers of petrol as well as diesel vehicles.
“The reason we’ve been slower to see unleaded price cuts is because the wholesale price of petrol – the price retailers buy the fuel for – has not fallen at the same rate diesel has. Diesel has been on a steady downward path since the start of May, driven by increased capacity from Asia, but the same cannot be said for petrol.
“If the conditions stay right, we could see some even lower prices in a few weeks as people return to work after the summer and the school run begins again. And if Brent Crude were to move to the $40 per barrel mark, the prospect of some enterprising retailers selling fuel for £1 per litre will make a return.”
Andy Peake, Asda’s senior director for petrol, commented: “We’re bringing some good news to unleaded motorists following a series of diesel price cuts. As we head towards the busiest bank holiday weekend of the year on our roads.”
Peter Cattell, fuel director for Tesco, said: “We know that lots of customers will be setting off on their holidays over the next week, so we’re dropping the price of our petrol this afternoon. This reduction of 2ppl on petrol, at all our 500 petrol filing stations, will mean millions of customers save money by shopping at Tesco.”
Avishai Moor, Sainsbury’s head of fuel, commented: “Diesel prices reached a record low this summer, so it’s great to now see good news for drivers using petrol cars. We know that fuel is a big expense and we are committed to helping our customers go further for less.”