Wed, Sep 26, 2018 8:09 PM
Asda, Morrisons, Sainsbury’s and Tesco are all cutting the cost of petrol by 2p per litre, but experts are warning that the reductions will be short lived.
The news comes after one of the longest periods of price rises for fuel in recent times, with prices being on the rise consecutively for month after month. It’s not all great news for UK drivers, with diesel prices remaining unchanged.
While drivers who buy their petrol at the major supermarket chains are likely to make savings, with Asda capping at £1.27 per litre, compared to Shell’s average price which was £1.34 in the past month.
Asda’s senior buyer, Dave Tyrer said: “Today's latest move shows that Asda is once again cutting the cost of filling up for motorists following a decrease in the wholesale costs on unleaded.
“Our new national price cap of 126.7p per litre will be welcomed by the millions of drivers across the UK who have seen prices rise by 10p per litre since the start of summer and are currently at their highest for five years.”
Whilst the short-term boost to the purses of those regular drivers will be welcome, industry analysts are warning the prices could bounce back upwards with the price of barrel of oil rising to its highest price since November 2014.
Simon Williams, RAC fuel spokesman said: “Drivers will be relieved to see a major supermarket cut the price of petrol after weeks of rising prices.
“The wholesale price of petrol has been falling since the start of September so it's right that retailers pass on the saving to motorists at the pumps, even if it is a little late.
“While this is clearly good news there is a black cloud looming over UK forecourts as yesterday a barrel of oil hit 82 US dollars – a price not seen since November 2014,' he continued.
“On top of this it is being predicted oil could rise towards 90 US dollars which without a strengthening of the pound could spell much higher prices at the pumps.”