Price 'war' at the pumps? Fuel prices are set to drop

Alex Hodgson

By: Alex Hodgson

Supermarket forecourts look set to battle it out in the coming weeks and months over the price of fuel after heavyweights Asda, Tesco and Morrisons declared they are cutting the cost of petrol and diesel prices at the pumps in a move that has been said to save drivers, at least £1 per fill.

Currently, the average price of petrol costs around 120.1 pence per litre while a litre of diesel costs, even more, at 122.3ppl. The AA Fuel Price Report states that a family with two petrol-run vehicles shells out approximately £240.22 per month on fuel, this is a stark rise to the £203.90 they were paying in February 2016. The price rise has been relentless on already hard-hit families in the UK.

The recent increases in fuel cost have been put down to the rising price of global oil prices after the Organisation for Petroleum Exporting Countries (OPEC) finally cut back production, the price has increased as the supply levels have been restricted. This, coupled with the falling value of the Pound in the wake of Brexit has added to the woes of drivers filling up their cars.

Asda has declared that from Tuesday onwards, UK motorists will pay no more than 114.7ppl for unleaded and 116.7ppl for diesel at the supermarket’s forecourts nationwide.

Following suit, fellow retail giants Tesco and Morrisons announced similar reductions, both companies knocked down their fuel prices by 2 pence per litre. RAC Fuel spokesperson Simon Williams said, “there is no doubt other retailers will follow and we will see prices on every forecourt come down”.

This is welcome news to all British motorists, but for how long will this price drop last?