Asda, Tesco and Sainsbury’s have reduced their pump prices by up to 2p.
Three supermarkets have cut the price of fuel in time for the bank holiday weekend.
A move by Asda spurred rivals Tesco and Sainsbury’s to follow suit.
Asda announced that their prices would be cut from today (Tuesday 19th), capping costs at 234 of its forecourts at a maximum of 124.7p a litre for petrol and 128.7p for diesel, its lowest prices since January 2011.
Tesco and Sainsbury’s have now reduced their petrol by up to 2p per litre and diesel by up to 1p.
Be aware that those two supermarkets don’t have a national price cap so regional charges could vary depending on competition from other local stores.
In an unexpected twist, it’s the independent retailers that have set this in motion. Competitive independents in the east of London have been selling petrol for as low as 125.9p a litre, encouraging Asda to make a move.
The AA said that the average price of UK petrol was down to 129.71p and diesel 133.74p yesterday, the lowest it’s been since February 2011.
Morrisons is the only major supermarket not to follow the trend. A spokesman for the supermarket said that they would be reviewing their prices to ensure that they remain competitive.
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A long time coming
The RAC has wanted fuel costs to fall since the decrease in wholesale oil prices in mid-June.
This price drop was driven by an excess of oil being exported from Libya, Saudi Arabia and the US coupled with lower oil demand in the US and Europe.
According to Asda’s Petrol Director, Andy Peake, it costs £6 less to fill the tank of a family car than it did last summer.
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