Asda and Morrisons have cut the price of petrol for the second time in a week amid a supermarket price war prompted by sharp falls in the underlying price of crude.
The supermarkets are reducing the price of petrol and diesel by up to 2p per litre from this weekend, due to a reduction in wholesale costs.
The price for drivers will not exceed 112.7p per litre for both unleaded and diesel at not only Asda and Morrisons but also Sainsbury’s.
Having kick-started the latest price war, Morrisons’ services director Roger Fogg said his firm’s move was aimed at helping motorists’ budgets “stretch a little further”.
While welcoming the bringing down of prices, RAC fuel spokesman Simon Williams also believes there is “scope to go deeper”.
He said: “Motorists need to be able to trust retailers to be transparent when they are benefitting from significant savings in the wholesale price. It is time to do the right thing and drop prices – otherwise they could be accused of ‘rocket and feather’ pricing.”
Of the retailers still to follow suit, he added: “It would be good if they surprised motorists with a bullish 3p a litre cut.”
The cuts will save more than £1 on a typical fill-up.
Cheaper petrol prices will bring welcome relief to household budgets hit hard by rising inflation in recent months. The average petrol price jumped from a low of 101p in February 2016 to 120p in March 2017, and has been a crucial factor in pushing up the consumer price index.
Williams added: “It’s great to see the supermarkets responding to our call to pass on wholesale fuel price savings to motorists at the pumps.
“This will help to reduce the cost of driving for millions by taking the average price of petrol down from 118p a litre to around 116p – a price last seen in December.”