Supermarket cuts petrol by 2p a litre

Petrol prices are forecast to drop by 5p a litre in the next two weeks. A sharp 7% contraction of wholesale prices is behind the anticipated price slip.

Asda is the first to announce a price cut - and other supermarkets will surely follow. The price reduction is desperately needed given that pump prices recently hit new highs.

Asda goes first

"We haven't made any decision yet. The guys are still looking at the numbers," press spokesperson for Morrisons, James French, told AOL Money.

It's often a game of chicken with fuel prices: who will go first? Asda has a reputation for cutting first - and they have cut first this time again. From tomorrow (Saturday 21 April) drivers filling up at Asda's 195 forecourts nationwide will pay no more than 138.7 pence per litre for unleaded and 143.7 pence per litre for diesel, Asda claims.

What about Tesco? "These things tend to happen very quickly. When I know you will know," Tesco told us.

7% wholesale cut

Petrol has risen 10.23p a litre and diesel 7.32p since pump prices started their climb at the start of the year, adding £21.72 to the monthly petrol cost of a two-car family. "In the past month alone, petrol has gone up 3.98p a litre and diesel 2.43p," says the AA. "A year ago, petrol cost 135.29p a litre and diesel 141.60p."

But in the last week, wholesales prices have slumped to $1,133 a ton - a cut of almost 7%. The AA claims market speculation has been behind much of the recent price hikes.

The most expensive petrol remains in Northern Ireland at 143.9p a litre on average, while Scottish prices at 142.2p are lower. Northern Ireland diesel costs 148.2p a litre on average while prices in Yorkshire and Humberside drifts downwards to 147.3p.

Meanwhile talks aimed at ending the fuel tanker drivers' dispute continue.

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