Asda cuts price of petrol by 2p a litre, easing pressure on motorists after weeks of rises

Maximum price at the pumps lowered to £1.27 as supermarket passes on lower wholesale costs, but respite may be short-lived as oil hits $82 a barrel

Over the past six months, the cost of filling up a typical 55-litre family car that runs on petrol or diesel has risen by around £6 (Reuters)

Asda has cut the cost of a litre of petrol by 2p after wholesale costs fell. The maximum price across the supermarket chain’s forecourts will now be £1.27, giving motorists some relief after fuel costs spiralled in recent weeks.

Asda is the first of the big four supermarkets to lower petrol prices but the chain said diesel will remain unchanged because wholesale costs have not moved.

The average cost of a litre of petrol in the UK spiked to a more than four-year high of £1.31 last week, after 11 successive weeks of price hikes.

RAC fuel spokesperson Simon Williams said rivers will be "relieved" to see a major supermarket cut the price of petrol.

“The wholesale price of petrol has been falling since the start of September so it's right that retailers pass on the saving to motorists at the pumps, even if it is a little late," he said.

“However, while this is clearly good news there is a black cloud looming over UK forecourts as yesterday a barrel of oil hit 82 US dollars - a price not seen since November 2014.

“On top of this, it is being predicted oil could rise towards 90 US dollars which without a strengthening of the pound could spell much higher prices at the pumps.”

Opec, the cartel of oil-producing countries, decided this week to keep production at current levels, holding supply back and boosting demand.

AA fuel price spokesperson Luke Bosdet said: “Once again, Asda has to take the lead in passing on fuel savings to drivers.

“Last weekend, despite three weeks of falling wholesale costs, the pump price of petrol hardly budged below the four-year highs that families and businesses have had to endure.”

Asda's senior fuel buyer Dave Tyrer said: “Today's latest move shows that Asda is once again cutting the cost of filling up for motorists following a decrease in the wholesale costs on unleaded.

“Our new national price cap of 126.7p per litre will be welcomed by the millions of drivers across the UK who have seen prices rise by 10p per litre since the start of summer and are currently at their highest for five years.”