Friday 30 November 2018 2:20 pm

Asda, Sainsbury’s and Morrisons announce plans to cut fuel prices tomorrow

Jess Clark is a City A.M. news reporter covering private equity and investment.

Jess Clark is a City A.M. news reporter covering private equity and investment.

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Three major UK supermarkets have announced cuts to fuel prices today as the wholesale cost continues to decrease.

From tomorrow customers at Asda, Sainsbury’s and Morrisons will benefit from 2p per litre discount on unleaded and diesel.

Drivers will now pay no more than 116.7p per litre on unleaded and 127.7p per litre on diesel at Asda petrol stations following the supermarket’s fifth fuel price drop since 26 October.

Asda senior fuel buyer Dave Tyrer said: “With Christmas just around the corner, we’re pleased we can do our bit to make our customers’ hard-earned cash go a little further.

“Our new national price cap…will be welcomed by the millions of drivers across the country and put money back in their pockets”.

RAC fuel spokesperson Simon Williams said: “This is yet more good news for motorists but despite Asda cutting their prices regularly the other supermarkets are sadly lagging way behind. There is often talk of a supermarket price war over fuel, but this couldn’t be further from the truth at the moment.

“Asda’s nearest competitor is currently charging 2.5p more for a litre of unleaded whereas the most expensive of the big four supermarket retailers is charging over 4p more per litre. Consequently, the UK average price of petrol is not falling at the rate it should be due to the dip in the value of oil.

“The sad reality for drivers is that the majority of fuel retailers are taking advantage of the falling wholesale price by pocketing the savings instead of passing them on at the pump."