Promising outlook for fuel price cuts says AA

Fuel prices are at their lowest since mid-January. Picture: Lynne Cameron/PA Wire

Drivers face a brighter outlook for fuel prices which are at their lowest for two months, the AA said today.

The motoring group reported oil prices had fallen by two dollars a barrel, the equivalent of a 2p per litre reduction at the pumps.

It said that fall and an increase in European petrol stocks had cut wholesale prices.

Price leader Asda cut its prices by 2p a litre on Tuesday.

AA research showed petrol averaged 118.9p in Scotland on Wednesday, nearly 1p less than across the UK. Diesel was on a par, at 121.7p.

AA president Edmund King said: “The cut in supermarket pump prices is very welcome. Asda’s was bold when taking into account oil price and exchange rate volatility.

“That can explain why other supermarkets’ price reductions have been more muted.

“We expect the fall in wholesale costs, providing it continues, will see bigger price cuts become more widespread.”