As the supermarket price war rages, petrol has become the latest commodity to see its prices slashed. In anticipation of the Bank Holiday weekend, supermarkets have cut the price of petrol by up to 2p per litre and by 1p per litre for diesel.
Asda was the first to make the cuts, announcing that it would lower prices in its 234 forecourts, and was quickly followed by Tesco and Sainsbury‘s who did the same. The cuts reflect a wider trend of lower costs for petrol. Analysts at Experian Catalist have released data showing that the average price of petrol in the UK has reached its lowest since February 2011.
These cuts have been made possible by the gradual decline in oil prices since the middle of June, when uncertainty regarding the situation in Iraq sent prices rocketing to $133 a barrel. Since then, increasing stability and a resumption in the supply of petrol from Libya has seen prices drop.
Although it is normally the supermarkets that are able to drive down prices and set the market rate, AA‘s head of PA, Paul Watters, has suggested that recently smaller independent retailers have been responsible for the latest cuts. The price cuts originated in East London where some independent stations sold petrol as low as 125.9p per litre. Asda responded with cuts of their own, which due to their national pricing policy resulted in lower costs nationwide.
Only Morrisons has failed to commit to cut the price of petrol at its outlets. The move by Asda comes as profits continue to flat line for UK supermarkets, but will be welcome news for families hitting the road this weekend as an average family car will cost £6 less to fill.
For £6 this Bank Holiday weekend, you could buy the following:
3 Ice Creams
18 Sausage Rolls
1 Rubber Ring