Belfast Telegraph

Superstores cut fuel prices after claims retailers failed to pass on savings

The UK's major supermarkets have cut fuel prices after motoring groups claimed retailers were failing to pass on savings following the oil price slump.

Asda was the first to announce such a move, lowering its price cap by up to 2p per litre meaning motorists will pay no more than 111.7p per litre at its filling stations.

This was followed by similar price cuts by Sainsbury's, Tesco and Morrisons.

Last week, t he RAC claimed f orecourt prices for diesel could be slashed by about 4p per litre while 2p could be taken off unleaded due to a fall in wholesale costs.

Oil dropped to 47 US dollars (£36) a barrel on Thursday, down 13% from May 23.

RAC fuel spokesman Simon Williams described the reduction in pump prices as " excellent news".

He said: " The supermarkets have led the way and we now hope for a much-needed price cut chain reaction across the country, with other retailers quickly following suit.

"While the value of the pound has fallen since the election, the price of oil has also reduced, bringing down wholesale fuel costs which should rightly be passed on to motorists at the pumps.

"Unfortunately, a cut to the price of diesel is long overdue as its wholesale price has been lower than petrol's for weeks with little reflection of this on the forecourt.

"Hopefully, this will be the start of greater diesel price transparency."

AA spokesman Luke Bosdet said: " Cheaper fuel at 4p a litre below than the national average has paid dividends for the supermarkets by maintaining their sales volumes while others' have dropped.

"This may pull back the customers who have been going to non-supermarket forecourts for top-up shopping combined with a fuel stop.

"Non-supermarket petrol stations are going to have to react, as will the rural small town forecourts still charging an astonishing 120p a litre."

Asda's head of petrol trading Dave Tyrer said: " Today's latest move shows that Asda is once again leading the way in reducing the price at the pumps to help the millions of motorists across the UK.

"Our new national price cap of 111.7p per litre on both unleaded and diesel will be welcomed by the millions of drivers who will be starting to plan their summer holidays."