Petrol prices in the UK will take an instant drop on Thursday (25th), as Sainsbury’s and Asda battle it out for customers on the petrol station forecourt, with 2p price cuts to take effect thanks to slipping global oil prices.
Wallmart owned Asda announced the drop initially, before Sainsbury’s followed suit and confirmed that they would also be cutting 2p from their petrol prices.
The drop means that consumers will be able to get petrol from Asda for no less than 133.7p a litre, 5p below the national average. However, diesel prices will not be affected by these drops in fuel prices and so fleet owners with fuel cards will not be able to take advantage of cheaper fuel costs.
Asda’s petrol trading head Jeremy Walton said: “We always aim to be the first retailer in each part of the country to drop prices when costs are falling and the last to put them up.”
Richard Crampton, Sainsbury’s head of fuel, enthused: “We’re always looking for ways to help our customers save money, particularly as we head towards the festive season, so we’re delighted that from tomorrow we will be reducing our petrol price by up to 2p per litre.”
AA public affairs head Paul Watters, however, expected fuel costs to drop even lower: “Last week, our fuel-price report pointed to a 4p drop in petrol wholesale prices working its way through the system.
“UK average petrol pump prices reached a late summer high of around 140p a litre in mid-September and sat there for more than a fortnight. More than a month on, the average petrol price yesterday was down to only 138.70p a litre.”
He added: “Asda’s move is very welcome, but unless the rest of the market reflects the lower cost, it’s a case of the same old story – prices up like a rocket, falling like a feather.”