Cuts spark price war at the pumps
Supermarket Tesco has cut its fuel prices following a big fall in the cost of oil internationally.
Tesco slashed 3p off a litre of petrol and diesel after oil prices tumbled following the opening of emergency reserves by the International Energy Agency.
Tesco UK chief executive Richard Brasher said: "We know our customers are feeling the pinch at the moment so we want to pass on the benefit of a fall in oil prices straight away."
The Tesco move will offer some respite to motorists who have seen average prices at the pumps soar to around 136p a litre for petrol and up to almost 140p a litre for diesel.
AA president Edmund King said: "We welcome this rapid 3p reduction in fuel prices and hope that other retailers will follow this lead.
"Earlier this week the AA revealed that high fuel prices are now affecting a record three-quarters of drivers who are having to cut back on journeys, cut back on other expenditure, or cut back on both. Reduced fuel prices will help the general economy to recover, as lower prices at the pumps means more spending elsewhere."
Later, Sainsbury's said it will be cutting fuel prices by up to 3p a litre.
A spokesman for the company said: "Sainsbury's continues to be one of the most competitive retailers on price and that includes fuel. We know that consumer budgets are stretched so from tomorrow our fuel prices will be dropping. This is to ensure that we continue to be one of the cheapest places for motorists to fill up their tank."
Asda is also cutting prices. From Saturday morning, the company is slashing fuel by up to 3p a litre, meaning drivers will not pay more than 130.7p a litre for petrol and not more than 134.7p a litre for diesel.
Asda's petrol director Andy Peake said: "Once again, Asda leads the way in saving drivers money. And unlike others, our price cuts are across the board. That's why no one will pay a premium for their petrol to fund lower prices in another town round the corner."