Business

New year petrol price cuts by three UK supermarkets

Petrol station Image copyright Thinkstock
Image caption Sainsbury's, Tesco and Asda say they will reduce petrol and diesel prices by 2p per litre

Three major UK supermarkets are ushering in the new year by cutting petrol and diesel prices.

Sainsbury's, Tesco and Asda all said they would reduce prices by 2p per litre.

Fuel prices have fallen a number of times since September.

Motoring organisation AA said the supermarkets were responding to competition and a fall in wholesale fuel prices.

Since the autumn, each of the supermarkets has lowered prices on multiple occasions. For example, Asda has dropped its prices about 13 times since September.

Luke Bosdet, a spokesman for the AA, said the latest reductions were "in line with wholesale price falls".

"There was a 2p [wholesale] price fall in the past fortnight," he said.

Supermarkets have been responding to price pressures from independent petrol retailers, he added.

Crude oil trading prices have also fallen dramatically.

On Monday, the average pump price for unleaded petrol hit 113.7p per litre, its lowest since March 2010.

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