Supermarkets cut fuel prices as wholesale costs fall

Supermarkets have announced fuel price cuts amid a drop in wholesale costs.

Asda made the first move, reducing the price of petrol and diesel by 2p per litre on Wednesday.

This was followed by Morrisons and Sainsbury’s.

Asda customers will pay no more than 116.7p per litre for petrol and 118.7p for diesel.

The supermarket said it is the first time its diesel price has dropped below 120p in nearly two years.

It is the latest in a series of price cuts by the retailer in recent weeks, which have reduced the cost of its fuel by up to 9p per litre since January.

Morrisons and Sainsbury’s announced price cuts of up to 2p per litre for both fuels, effective from Thursday and Friday respectively.

Oil prices have fallen steadily since early January, and concerns over the coronavirus in recent weeks have hit demand.

Asda senior fuel buyer Dave Tyrer said: “Once again we’re pleased to be passing on wholesale cost reductions to customers.

“It will be a welcome boost, especially to diesel drivers who are seeing some of the lowest fuel prices since 2018.”

AA fuel spokesman Luke Bosdet accused the fuel trade of being too slow to pass on the benefits of reduced wholesale costs.

He said: “Too many forecourts held on to savings from lower wholesale costs feeding through to their pumps.”

Government figures published on Tuesday showed average fuel prices at UK forecourts stood at 123.5p per litre for petrol and 127.7p for diesel.

This is the lowest level for petrol since April 2019 and diesel since May 2018.