Leading supermarkets in petrol price war

A PETROL price war has broken out as four leading supermarkets dropped their prices within hours of each other, prompting claims of a “glimmer of sunlight” for hard-pressed drivers.

Asda cut the cost of a litre of petrol by 2p in an announcement yesterday morning, followed quickly by Sainsbury’s, which said it was also introducing a reduction of up to 2p a litre from today.

Third to declare a drop was Morrisons, which reported that it would cut up to 3p a litre off petrol, while the fourth supermarket to announce a fall in the price of petrol was Tesco – the biggest fuel retailer in the UK – which is bringing in a cut of up to 2p a litre on its petrol from today.

Filling up an average-sized car like a Mondeo with a 70-litre tank at Morrisons means motorists will save £2.10.

Industry experts said the cuts, which follow similar drops in the price of diesel last week, had been expected after a fall in wholesale prices and the strengthening of the pound against the dollar. Oil is currently at its lowest level in a month.

The latest Asda cut means its customers will pay no more than 133.7p a litre for petrol from this morning, following the introduction of a nationwide cap on its prices. Other supermarkets do not have the same set price for petrol across the country, but will make the reductions across all of their forecourts.

Mark Todd, petrol director for Morrisons, said: “Further falls in wholesale prices mean we can pass savings on to customers and continue to offer some of the lowest prices on the market.”

Driving organisations welcomed the cuts, but warned that UK petrol prices were still prohibitively high for many motorists. “We predicted these cuts last week, with oil down to its lowest level in a month and the pound gaining on the dollar after its recent fall,” said AA president Edmund King. “This is perhaps another glimmer of sunlight for drivers after a hard, wet, pot-holed and expensive winter of driving.”

RAC technical director David Bizley said: “Certainly these price cuts will be widely welcomed by UK motorists, and it is encouraging to see that the drop in the wholesale price of fuel is being passed on.

“Nonetheless, it is difficult to underestimate the impact that the UK’s high fuel prices are having on us as individuals. Our research has shown that almost half of motorists would avoid promotion or a new job that involves more driving, and a quarter believe prices negatively affect their working life.”

He added: “We will continue to fight the motorist’s corner on this front and campaign for greater price transparency.”

A recent report from the RAC found that up to half of Scottish drivers have cut out non-essential trips to save money on fuel.

The motoring organisation said that two-thirds of drivers have had to cut back on essential items just so they can keep the car on the road.

A rise in fuel duty scheduled for September was cancelled by Chancellor George Osborne in his Budget last month.