Supermarkets drop fuel prices for seventh time since October

Supermarket chains Asda, Sainsbury's and Morrisons will cut prices at fuel pumps from tomorrow as a lower oil price continues to be passed on to consumers.

For the seventh time since late October Asda has said it will lower the price at its 320 petrol stations.

Customers will pay 1p per litre less for unleaded petrol, or no more than 113.7p, while diesel will be reduced by 2p to 123.7p, the supermarket chain said this morning. Sainsbury's followed suit in the early afternoon, dropping the price at its 314 forecourts while Morrisons later said it too would lower the cost of its fuel at 335 sites.

“As a result of wholesale prices recently falling we’ve been able to pass these savings onto our customers, giving them a good start to the new year,” Fuel buyer Dave Tyrer said.

In the past other supermarkets have lowered their prices in lockstep with Asda.

A spokesperson for automotive services company RAC said: “This cut is very welcome news, but the big question is whether the other supermarkets will respond and drop their prices sufficiently at all of their sites.

“Drivers badly need the supermarkets to start competing on price again as the so-called price war has been ‘cold’ since the middle of October. If this doesn’t happen then today’s Asda cut will not lower the average price of petrol and diesel across the country by as much as it should.

“This will mean drivers who are not near a low-cost fuel retailer will continue to pay over the odds.”

Oil prices have dropped since October, with international standard Brent crude falling from around $85 per barrel to $58 earlier today.