Motorists are set to benefit from cheaper fuel prices this week, after leading supermarkets announced that they would be slashing prices.
Sainsbury’s has said that it will be reducing prices by 5p a litre on both petrol and diesel, at its forecourts across the country. Asda quickly followed suit, stating that it too would drop prices, by 1p per litre for petrol and 2p for diesel.
Other supermarket chains are yet to announce whether they will be reducing prices at the pumps, though they are expected to offer similar discounts.
Motoring organisations reacted positively to the news. Luke Bosdet, spokesman for the AA, said: “The real value will be in places, often small market towns, suffering from the postcode pump price lottery – having to pay at least 3p a litre more than in neighbouring, more competitive towns. If that pulls down the price among other retailers, that will be a big benefit,” the Telegraph reports.
It is estimated that drivers buying fuel at Sainsbury’s would, on average, save around £2.50 for each tank of fuel, though in some areas the price cut would only bring the supermarket in line with cheaper retailers.
The drop in forecourt prices has been attributed to the falling wholesale price of crude oil, which has been brought about by increased oil production in the Middle East. The recent ‘no’ vote in the Scottish independence referendum has also resulted in the strengthening of the pound against the dollar, contributing to a reduction in prices.