Asda has cut the price of its fuel by 2p a litre across the UK, prompting other major supermarkets to follow suit.
The supermarket chain has set a national cap of 126.7p a litre for unleaded and 133.7p on diesel, provoking Morrisons and other superstores to follow suit, though not everyone has been brave enough to set a national cap.
Motorists whose budgets are already stretched thanks to the rising cost of the weekly shop, increased utility bills and the escalating cost of living have welcomed the drop in price.
Studies also reveal that the drop in fuel price could further boost consumer confidence and, in addition to a buoyant house market and improved retail sales could reenergise a slumped economy.
The Daily Mail reported that an international study published today by retail analysts Nielsen reveals UK consumer confidence is at the highest level in six years.
The confidence index rating of 87 is the best since March 2007 and the fourth highest among consumers in 60 countries that were surveyed.
The petrol price cut by Asda comes after a drop in the wholesale price of oil on the global markets. Asda’s Jeremy Walton, its head of petrol trading, said: “Our shoppers don’t have to figure out complicated deals and collect vouchers to get the best price, they simply pay what they see at the pump.
“No one is unfairly penalised for not spending enough or forced to spend more than they wanted to; everyone can save money with our price cuts.
“Our prices are the lowest they have been all year and our national price cap on fuel means that no-one filling up at Asda is forced to pay a premium for their fuel because of where they live.”