The Fuel Price War; Could it Save You Money?
Every driver wishes they could cut their costs at the pumps and in recent times after a big fall in fuel prices we have seen the prices rise once more. After 4 consecutive months of rising costs it has been announced that three of the UKs largest supermarket brands are set to slash their prices in a war to become the lowest priced petrol and diesel retailers. Asda, Tesco and Morrisons will look to cut their prices which is expected to, on average, save you £1 per fill up. This may not be a large saving to some but in the words of Tesco themselves “every little helps”.
Asda have announced that from this week drivers will pay no more than 114.7 ppl for petrol and no more than 116.7ppl at all of their 301 petrol stations nationwide. Tesco and Morrisons have also stated similar savings; knocking 2p per litre off their current fuel pricing.
According to RAC fuel spokesman Simon Williams, there is “no doubt other retailers will follow suit and we will see prices on every forecourt come down.”
The UK’s average petrol price currently sits at around 120.1ppl while a litre of diesel will cost motorists on average 122.3ppl. According to the AA Fuel Price Report, a family with two petrol cars is spending around £240.22 on petrol each month, compared to £203.90 in February 2016.
The cause for this rise came from the news that the body in charge of exporting petroleum announced after many tough years for the oil and gas industry that they were cutting back on production.
Their original plan to flood the market with cheaper oil and squeeze out smaller rivals within the industry was clearly not working and with the fall in the price of the pound (as fuel prices are calculated in US Dollars) in recent months they have decided to abandon this plan and begin to raise their prices.
So all in all there is some good news for motorists as this price rise is looking to slow and we should see further cuts to prices and more money in our pockets as this battle in supermarket forecourts rages on.