Petrol prices at 30-month low as supermarkets continue fuel war

29 Oct 2013
Mirror UK

Asda slashed 2p off a litre of petrol before Sainsbury’s matched its price and Morrisons and Tesco also lopped 2p off

Asda has ramped up the fuel pump war by slashing 2p off a litre of petrol.

It takes the forecourt price down to to a two-and-a-half year low of 126.7p.

Rivals followed suit with Sainsbury’s matching Asda’s price and Morrisons and Tesco lopping 2p off.

The relief for millions of motorists comes as wholesale fuel prices fell 8%.

The last time petrol was this cheap was in January 2011 when unleaded cost 125.19 – but a tax increase took it up to 127.21p days later.

Asda, which has capped unleaded at 126.7p and diesel at 113.7p a litre, has been at the forefront of a round of price cuts this year.

Jeremy Walton head of petrol trading said: “Our shoppers don’t have to figure out complicated deals and collect vouchers to get the best price, they simply pay what they see at the pump.”

Sainsbury’s – which recently stunned rivals with a 6p a litre price cut – matched Asda’s pump prices and the chain’s fuel buyer Chris Biggs said: “We know that fuel is a big part of the weekly budget for many households so we hope this cut will be welcomed by drivers across Britain.”

Cheaper petrol across all four supermarkets came as wholesale prices fell to $107.53 a barrel – an 8% dip since August.

Experts say prices could tumble to below the $100 mark next year which would further ease the squeeze on cash strapped Brits struggling to make ends meet.

Motoring groups welcomed the pump price drop and the RAC’s head of external affairs Pete Williams said: “Motorists should be pleased that fuel retailers have acted so swiftly in lowering prices at the pumps following a reduction in wholesale prices.

“Every penny saved at the pump will help families meet the spiralling household bills at a time when they are starting to think ahead to Christmas.”

It said the supermarket price war should help drive the national average down from 132p a litre to around 129p a litre for unleaded and take diesel from 139p to 137p over the next few weeks.

Paul Watters, head of AA public affairs said prices were “bobbling” around the 132p mark and added: “Drivers should keep an eye on the price boards.”