Tesco sets off major fuel pump war after slashing petrol by 6.5p and diesel by 4.5p after Asda cut prices
TESCO cut petrol by 6.5p a litre and diesel by 4.5p yesterday after a long-awaited forecourt price war finally broke out at the supermarkets.
Asda was first on Friday, cutting petrol by 5p per litre and diesel by 3p.
Drivers are now paying an average of 174p for unleaded and 185p for diesel at the pumps — slashing £5 off a tank, according to the AA.
Sainsbury’s and Morrisons also cut prices over the weekend.
A Morrisons spokesman said: "We have been actively reducing petrol prices by several pence over the last few days with a significant cut in most areas on Saturday.”
A Sainsbury's spokesman said: "We have lowered our prices in two phases - Sunday to Thursday by around 3p per litre and then again over the weekend by 5p per litre.
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"We are committed to offering motorists great value and over the weekend we lowered the price of petrol and diesel across our forecourts. We price locally and competitively.”
Last week the AA said that after wholesale petrol price falls it could knock £10 of the cost of filling up a tank.
Wholesale prices peaked at £1 a litre on June 1 but dropped below 80p two weeks ago.
Supermarket bosses have been under pressure to cut prices following criticism that drivers are not getting a fair deal.
Prices have been driven down by smaller firms under-cutting big names.
Drivers queued to fill up at a Texaco garage in Walkden, Greater Manchester after it started selling petrol for 159.9p a litre.
Experts have urged drivers to seek out independent petrol stations to find cheaper prices.
RAC spokesman Simon Williams said: “It appears to be the case that it’s no longer the big four supermarkets that lead on price, but instead smaller independent sites that are prepared to buck the national forecourt trend.
“The price retailers pay has fallen by a massive 17p a litre. Yet average pump prices have reduced by a paltry 4p.”
Howard Cox from FairFuelUK said: “Small independent garage bosses are setting the pace to be the nation’s cheapest forecourts, and for a change it’s the supermarkets who are following their lead.
"One small garage owner told me, supermarkets have cut prices because independent sites have been taking their gallonage hand over fist.
"He told me, even after their cut we are still cheaper than them."
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The industry is being investigated by the Competition and Markets Authority over pricing concerns.