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Supermarket forecourts cut pump prices as wholesale costs fall

Supermarket forecourts cut pump prices as wholesale costs fall

Supermarket forecourts have cut their pump prices by 2p a litre following claims that retailers were not passing on savings made as a result of lower wholesale costs.

Asda, Morrisons and Sainsbury’s led to price cuts with RAC fuel spokesman Simon Williams saying: “This is excellent news for motorists as it should spark cuts from all retailers bringing the price of petrol down nationwide from its current average of 130.46p a litre.

“But this is sadly long overdue given the fact the wholesale price of unleaded has been low enough for a significant reduction at the pumps since mid-October.

“We badly need a case of ‘follow the leader’ now and for big retailers to actually have the often-talked-about ‘pump price war’ as that would rightly benefit consumers. Retailers have not played fair with drivers in a falling wholesale market. Asda was the only big four supermarket to cut the price on the forecourt but even that didn’t happen until late in October, while Tesco chose to offer 10p off a litre to customers who spent a certain amount in store.

“When wholesale prices drop retailers should pass savings on to all motorists by cutting their pump prices sooner. This is vital to the UK average price as supermarkets are so influential in fuel retailing they need to drop their prices for others to follow around the country.

“There is also better news on the horizon for diesel drivers. While diesel has risen substantially to an average of 136.79p, and unfortunately still appears to be going up, it should now begin to reduce as the wholesale price has started to fall.”

Refilling with petrol at a motorway service area, however, now costs an average of 149.32p - a slight reduction of 0.3p a litre on the start of the month when it was 149.62p, according to the RAC. Frighteningly, said the motoring organisation, a litre of diesel at a motorway forecourt cost an average 155.22p - an increase of 2.7p in October. A tank of petrol is therefore £82.29 while diesel is an eye-watering £85.37.