​Supermarkets slash petrol prices again

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Asda is leading the charge by UK supermarkets to slash pump prices ahead of the winter months. In what is the most pocket-pleasing forecourt price board in nearly four years, Asda has lowered petrol prices to 120.7p per litre, with a litre of diesel fuel weighing in at 124.7p.

The supermarket's move coincides with the rise in fuel consumption and use of heating in households following the colder temperatures of autumn and winter. Lower prices have been described as a "timely boost" by AA head of roads policy Paul Watters, as families go on longer journeys during the half-term school holiday, reports the Daily Mail.

And Asda is not alone in its price cutting, as Tesco announced that up to 2p per litre will be shaved off its pump prices and Morrisons quickly matching this drop. Tesco customers can also save up to 20p a litre in fuel costs with savings from their Clubcard loyalty scheme – provided they spend substantial amounts in store each month.

This latest fall in prices follows a 5p per litre fall in wholesale oil costs over the last fortnight, with a barrel of oil now dropping below $86 (£53.33). As a result supermarkets are boasting their lowest fuel prices since December 2010.

These latest savings at the pumps are the third of their kind over the last month. Tesco and Asda announced cuts towards the end of September, whilst Sainsbury's were also in on the act by charging up to 5p less per litre of petrol. Around two weeks later, all three decreased unleaded petrol prices by 1p per litre, whilst Sainsbury's and Asda both slashed diesel prices by up to 2p a litre.

It remains to be seen how long prices will drop for, but in the meantime motorists' wallets can breathe a sigh of relief.

Author: Dan Godfrey