Asda has answered the call to lower its price of fuel a day after the RAC called on big supermarkets to cut petrol and diesel costs.
The motoring organisation lobbied Asda, Morrisons, Sainsbury’s and Tesco to lower its pump prices by 3p-a-litre for both diesel and petrol yesterday.
After just 24 hours, Asda confirmed it will lead the way by cutting both diesel and petrol by 2p.
This comes after the wholesale price of both fuel types dropped in the last fortnight due to a seven per cent fall in oil from $70.55 (£50.41) on 25 January to $65.58 (£46.86) on February 7.
The Press Association contacted the other supermarkets, but none confirmed if they would drop pump prices.
RAC fuel spokesman Simon Williams said: “Motorists will be pleased Asda has led the charge on reducing the price of fuel just a day after the RAC called for a cut. This should spark a chain reaction with the other supermarkets and fuel retailers across the country.
“After three months of petrol and diesel going up it’s a relief to see prices at the pumps finally coming down again just in time for half-term when more people will be taking to the roads.
— RAC Press Team (@RACPress) February 9, 2018
“The falling price of oil has paved the way for these latest forecourt fuel cuts. This is due to the United States reaching record highs in crude oil production and a glut of fuel in storage when demand is lower, together with the North Sea’s largest oil pipeline coming back online after being closed for repairs since December.”
The recent drop in oil price has been caused by an unexpected increase in fuel stocks in the US, the RAC says, sparking fears of oversupply into what is traditionally a season of lower demand.
In addition, the North Sea Forties pipeline, which was shut down in December due to a crack, has just reopened. This will bring 450,000 barrels of Brent crude oil a day on to the market.