Asda, Tesco Morrisons and Sainsbury’s have all announced that they are cutting their fuel prices by up to 3p per litre.
Asda was the first to announce a price cut at its 322 forecourts, with the other three major chains quickly following suit.
Asda said that from Today (Thursday June 6), it would reduce prices at its forecourts, bringing unleaded down to 126.7p and diesel to 128.7p.
Shortly after, Tesco and Morrisons confirmed that they would also cut prices of both petrol and diesel by up to 3p per litre from June 6, with Sainsbury’s introducing the same reduction on June 7.
Wholesale oil prices have fallen in recent weeks but until now forecourt charges have not reflected this.
According to RAC Fuel Watch data May was the fourth consecutive month of prices rises, with petrol up 2.34p to 130.57p and diesel increasing by 1.74p to 135.54p.
As a result of the rises petrol is only a penny away from its five-year high of 131.58p, recorded on 15 October 2018. Diesel hit 136.94p a litre on 30 October 2018 – its highest since March 2014.
RAC fuel spokesman Simon Williams said: “Diesel drivers especially will be relieved to see pump prices finally going down instead of up. 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. 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.”
Kitty Bates, consumer spokesperson at fuel information service PetrolPrices.com commented: “The news of supermarkets starting to drop prices is no doubt a good thing for motorists who have been suffering from price rises for four months now.
“We would expect to see other supermarkets follow suit over the next couple of days as they start to compete on price, with independent retailers following this once they have sold through their existing stock.
“There’s considerable scope for prices to continue to drop, as oil prices have fallen drastically in the past few days and we would expect them to either level out or potentially fall even further.”
David Pegg, Fuel Buying Manager for Sainsbury’s, said: “As we head into the start of summer we are committed to helping our customers live well for less, whether they’re stocking up on groceries or refuelling their cars. That’s why we’re dropping the price of both unleaded petrol and diesel by up to 3p per litre across our forecourts by Friday.”