However, the reduction in the cost for customers should have happened much sooner.
Last month, fuel prices started to drop, but drivers were denied bigger reductions as supermarkets were clinging on to excessive margins.
Asda has now decreased the cost of petrol across its 320 UK filling stations by an average of 4.5p per litre – according to RAC from last week.
Diesel prices across all Asda stores have also been cut by an average of 5.5p per litre.
The drop in price came as a surprise, as they did not make any announcements that it was planning on making the price cuts.
Despite the drop in costs for customers, the RAC is urging all supermarkets to do more.
RAC fuel spokesman Simon Williams said: “While we’re pleased one major supermarket retailer has finally started heeding our calls to pass on the enormous drop in the wholesale prices of both fuels, the fact these price cuts have been made so quietly is surely admission that they should have come much sooner.
“Asda is now charging an average of 153.5p for petrol and 176.7p for diesel which is around 2p less than its rivals. We urge the other three supermarkets to catch up quickly – or go even further – and give drivers some much-needed relief from high prices next time they fill up.
“If they do, this will bring the UK average petrol price down from its current 157.8p which benefit drivers everywhere.”
In November, Costco showed that fuel pricing could be fairer for UK drivers, by cutting the cost of petrol to 147.7p a litre – a 14p drop from the national average.
Following this, the RAC called on Asda, Morrisons, Sainsbury’s and Tesco to slash their prices in response to steadily falling wholesale costs.
The RAC believes the move by Costco demonstrates how overpriced fuel is for customers.
Recently, some new data found that small, independent garages in Mid and North Wales – which are normally at least 10p per litre more expensive than the supermarkets – are now 12 to 15p per litre cheaper than the nearby supermarkets.
This further highlights the unfair fuel prices drivers are currently facing.
Williams continued: “Despite these reductions at Asda, our analysis of wholesale data shows this should really be just the beginning as there’s easily scope for another 10p a litre to come off the current average price of both petrol and diesel.
“Perhaps it will be Asda which once again takes a leadership position by further cutting its prices to help drivers save money in the run-up to Christmas.”
What do you make of this latest development? What more can be done to help reduce the cost of petrol and diesel for UK drivers? Leave your comments below.
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