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Supermarkets cut fuel prices nationwide

Tuesday 15 November 2016, By Autovolo

Supermarkets cut fuel prices nationwide

Supermarkets cut fuel prices nationwide

Asda, Tesco, Sainsbury’s and Morrisons have all dropped their fuel prices by up to 3p per litre after MPs called for fuel duty to be cut in the upcoming Autumn Statement.

Yesterday, Asda said that customers would not have to pay more than 110.7p per litre of unleaded at any of its filling stations across the country. Diesel prices were also reduced by as much as 2p per litre, to a maximum of 112.7p per litre.

Sainsbury’s, Morrisons and Tesco all revealed similar price cuts, reducing the price of unleaded by as much as 3p per litre.

RAC fuel spokesman Simon Williams commented: “While this level of cut is clearly good news it has come far too late, as the wholesale price of fuel has been falling since the end of October when the oil price began to fall again.

“Retailers should have reduced their prices then, rather than making one bigger headline-grabbing cut now. The RAC called for a cut last week so it’s a case of better late than never.”

Williams also explained that the first two weeks of November confirmed the existence of the “rocket and feather” principle – a phenomenon that sees fuel prices increase quickly and fall slowly.

“This is a great shame as retailers previously had a good record of lowering their prices in response to wholesale cost savings,” he said.

“This will sadly undermine motorists’ trust in fuel retailers and it’s hard not to see it as them taking advantage of the current climate which has led people to think that higher fuel prices are an inevitability simply because of the weaker pound and talk of the rising cost of goods.”

Williams also highlighted there was more room to cut prices, due to the fact that the RAC Fuel Watch showed that the national average price of petrol should decline to around 110p per litre, as opposed to its current value of 116.68p.