Supermarkets to slash fuel prices after oil price drop

Asda, Morrisons, Tesco and Sainsbury’s have announced that they are to cut the price of petrol and diesel fuel, after motoring groups criticised forecourts for not responding to the drop in oil prices.

It’s hoped that the latest drops will encourage a new fuel price war, with drivers benefitting from cheaper prices at the pumps.

Asda led the announcements yesterday after six previous cuts to prices in the last three months. It remains the cheapest large retailer to buy fuel from, with drivers paying no more than 113.7p per litre of petrol or 123.7p per litre of diesel.

Morrisons will follow suit, while Sainsbury’s and Tesco will drop their prices on Wednesday.

Asda’s senior fuel buyer, Dave Tyrer, said: “As a result of wholesale prices recently falling we’ve been able to pass these savings onto our customers, giving them a good start to the new year.”

News of the drop comes just days after the All-Party Parliamentary Group for Fair Fuel called for the introduction of a fuel price watchdog to ensure retailers weren’t profiteering from high prices.

The APPG, supported by the campaign group FairFuelUK, said that a significant drop in the wholesale price of oil had not been passed on to customers.

RAC fuel spokesperson Simon Williams said: “These cuts are very welcome news, with drivers badly needing the supermarkets to start competing on price again as the so-called price war has been ‘cold’ since the middle of October. However, it will still mean that drivers who are not near a low-cost fuel retailer will continue to pay over the odds.”