Supermarket Fuel Cuts Are Well Overdue Says Experts

Wed 5th Jun 2019

Asda has announced that it is cutting fuel prices by 3p a litre, but motoring campaigners are saying that the cuts are too late with wholesale oil prices been declining for weeks.

Despite the price of a barrel of crude oil dropping in recent weeks, the average price of fuel at the pump actually rose for a fourth consecutive month in May. Campaigners have condemned supermarket bosses for the ‘rocket and feather’ pricing policy which sees fuel prices rocket upwards when wholesale prices rise, but fall slowly like a feather when the wholesale price drops.

The RAC’s fuel spokesman Simon Williams said: “The wholesale price of diesel has now been lower than petrol since 17 May, yet there is currently an average difference of 5p between the two on our forecourts,” he said.

“Consequently, there is scope to cut the price of diesel by at least 6p a litre.”

Asda’s cuts will bring small relief to many drivers, however Williams is adamant the retailers should be doing so much more rather than profiting from drivers who have limited options at petrol pumps.
“While this is obviously welcome it's important to realise that the drop in wholesale costs has been dramatic meriting far bigger price reductions for both petrol and diesel,” Williams added.

“For this reason we view this round of cuts very much as a good start. We should really see more in the next week or so.

“We would very much like to see retailers reflect wholesale price reductions more closely.

“This is particularly the case with diesel which has been a similar price to petrol on the wholesale market for some time, yet is still 5p a litre more expensive on average on the forecourt.”