Asda slashes petrol price by 3p per litre

Marco Green
June 14, 2018

Prices of both petrol and diesel have risen steadily in recent months thanks to increases in the price of oil and the pound's weakness compared with the U.S. dollar.

RAC spokesperson Rod Dennis said: "Our data shows that it's high time retailers cut the price of petrol and diesel at the pumps - we see no good reason for them to wait before passing on savings they are benefiting from which have been brought about by falling wholesale prices".

The retail giant has reduced the price of unleaded petrol by up to 3p per litre and diesel by up to 2p, becoming the first major retailer to do so this week.

The RAC says recent falls in wholesale costs have been caused by the United States drilling for more oil than in recent years, increased output from Russian Federation and speculation that oil producing group Opec will end its restriction on production. With petrol prices rising at their fastest rate in 18 years last month, millions of households and businesses will have been feeling the effect of having to spend more on what is an essential purchase for many.

But since the end of last month the oil price has been falling, and so have wholesale fuel prices. However, retailers have not lowered their prices accordingly, sparking concerns that retailers are stockpiling profits ahead of a possible price war if a price dip happens, rather than matching their prices to the wholesale cost. As crude oil is priced in dollars, the exchange rate also plays a part.

However, after the RAC's damning report was published, retailers appear to have cut back prices.

There have been suggestions that, rather than increasing supply, OPEC could continue its limit or cut it further to push up prices.

Similar price hikes were implemented in other cities across the nation fueling nation-wide protests and a call for excise duty cut. Should oil prices reach three figures for a barrel, this could lead to record pump prices.

"With a national pricing strategy that guarantees motorists the same treatment wherever they are in the United Kingdom, it shows up supermarket rivals who are driving their customers mad by charging up to 11p a litre more for fuel between their own sites".

Other reports by Click Lancashire

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