UK drivers are set to benefit after a number of supermarkets said they would lower the price of petrol.
UK drivers are set to benefit after a number of supermarkets and an oil company said they would lower the price of fuel.
Asda said it would cut the price of unleaded petrol and diesel by 3 pence per litre, while Morrisons said it would cut both prices by 4p per litre.
Asda said it would cut the price of unleaded petrol and diesel by 3 pence per litre, while Morrisons said it would cut both prices by 4p per litre.
Sainsbury's said it would look to match its rivals in local areas, and offer an extra 5p off per litre for customers who spend £50 or more on food in store.
BP said petrol and diesel prices at the 223 stations it operates would fall on average by 1p a litre.
Tesco said it had been running a similar promotion for the past month.
Sainsbury's and Tesco said they would look to match rivals locally.
Fuel prices have risen in recent months as the price of crude oil has increased. Oil prices hit record levels above $147 a barrel in early July.
Fuel prices have risen in recent months as the price of crude oil has increased. Oil prices hit record levels above $147 a barrel in early July.
However, oil prices have dropped recently, to about $132 a barrel, resulting in a 6% fall in the wholesale price of petrol since mid-July, according to the AA.
However, oil prices have dropped recently, to about $132 a barrel, resulting in a 6% fall in the wholesale price of petrol since mid-July, according to the AA.
Helping hand?
Helping hand?
Asda's price change came into effect on Tuesday, making unleaded petrol 113.9p per litre with diesel 128.9p.
Asda's price change came into effect on Tuesday, making unleaded petrol 113.9p per litre with diesel 128.9p at its 170 forecourts.
David Miles, Asda's trading director, said: "We are seeing a more stable reduction in oil prices, allowing us to pass on the savings to customers.
David Miles, Asda's trading director, said: "We are seeing a more stable reduction in oil prices, allowing us to pass on the savings to customers.
"We urge other retailers to follow our lead at a time when customers need as much help as possible."
"We urge other retailers to follow our lead at a time when customers need as much help as possible."
Morrisons introduced its price change on Monday evening. It said it was "ensuring customers reap the benefit [of lower oil prices] by passing on the saving quickly, for cheaper prices at the pump".
Morrisons introduced the price change at its 285 petrol stations on Monday evening. It said it was "ensuring customers reap the benefit [of lower oil prices] by passing on the saving quickly, for cheaper prices at the pump".
BP said the pump prices at the 223 sites it operates would be cut by an average of 1p per litre by the end of the day in response to the fall in crude prices and local competition.
Some stations would see a reduction of 4p per litre, it said.
"We don't have a national pricing strategy. We set our prices on a site by site basis in response to the local market and crude oil," said spokesman Mark Salt.
However, BP does not control pricing at around 950 stations that sell BP-branded fuel.
Discounts
A Tesco spokesman said that it had been offering 5p off per litre to customers who spend at least £50 in store for the past month and added that it always looked to match competitors locally.
A Tesco spokesman said that it had been offering 5p off per litre to customers who spend at least £50 in store for the past month and added that it always looked to match competitors locally.
Sainsbury's said its fuel promotion would start on Thursday 24 July and end on Thursday 7 August.
It explained in a statement that: "Our customers can reap an even bigger reward because we are running a 5p off per litre promotion when they spend £50 or more in-store and they will earn Nectar points as well."
'Dragging their feet'
The AA expects fuel suppliers to pass on, not pocket, the saving for the good of UK families, hauliers and the economy Edmund King, AA
The AA expects fuel suppliers to pass on, not pocket, the saving for the good of UK families, hauliers and the economy Edmund King, AA
The AA said that wholesale gasoline prices had fallen 6% since mid-July and it said other fuel retailers should follow the supermarkets' lead and cut petrol prices.
Sainsbury's said its fuel promotion - which will also see it offer 5p off per litre when customers spend £50 or more in store - would start on Thursday 24 July and end on Thursday 7 August.
Hauliers welcomed the moves, which come a week after the government announced it was delaying a 2p a litre rise in fuel duty that had been due to come into force in October.
The AA said that wholesale gasoline prices had fallen 6% since mid-July and it urged other fuel retailers should follow the supermarkets' lead and cut petrol prices.
"The AA expects fuel suppliers to pass on, not pocket, the saving for the good of UK families, hauliers and the economy," said AA president Edmund King.
"The AA expects fuel suppliers to pass on, not pocket, the saving for the good of UK families, hauliers and the economy," said AA president Edmund King.
"Should fuel suppliers and retailers appear to be dragging their feet we will seek to expose this."
"Should fuel suppliers and retailers appear to be dragging their feet we will seek to expose this."
Ray Holloway, of the Petrol Retailers Association, said independent fuel retailers would be unlikely to respond immediately to the cuts.
Ray Holloway, of the Petrol Retailers Association, said independent fuel retailers would be unlikely to respond immediately to the cuts.
"The supermarkets are moving the price in anticipation of further falls in the wholesale price, " Mr Holloway said.
"The supermarkets are moving the price in anticipation of further falls in the wholesale price, " Mr Holloway said.
"Independents will pass on those falls in due course."
"Independents will pass on those falls in due course."
How have increased petrol prices affected you? Will these reductions help? What is your reaction to the supermarkets' decision? Send us your comments using the forms below.
How have increased petrol prices affected you? Will these reductions help? What is your reaction to the supermarkets' decision? Send us your comments using the forms below.
