For the last several weeks, fuel prices have been at their highest levels since December 2014, following several months of consecutive price increases.
These increases have been caused by a perfect storm of rising oil prices and the Pound’s falling value against the Dollar following the referendum to leave the European Union last year. The average price of petrol in February 2017 was almost 20 pence more per litre compared to February 2016. For further details, you can compare historical fuel prices here.
An additional factor that played into the situation was that supermarkets appeared to ease off being particularly competitive with their fuel pricing. There was no sign of a price war and the gap started to narrow (or even close) between supermarket prices and those being offered at independent and brand name forecourts.
However, this week things have begun to change. Asda and Morrisons announced price cuts on Monday which finally triggered a long-awaited new supermarket fuel price war.
Asda revealed that they will be selling unleaded for 114.7p per litre and diesel for 116.7p per litre from this week, with Morrisons responding on Monday by tweeting the following:
Tesco also joined in on Tuesday by dropping their prices by 2p a litre, and yesterday The Sun reported that Sainsbury’s had followed suit and cut their prices by 2p a litre as well. A 2p per litre cut represents a saving of over of approximately £1.30 per tank for drivers.
These are the first price cuts since last November and will be welcome news for motorists who have felt the pinch from the recent high prices of fuel.These price cuts also come just days after last week’s budget revealed that fuel duty will remain frozen.
RAC spokesman Simon Williams described the price cuts as “the perfect spring gift for motorists,” adding that his organisation was “very relieved retailers acted without any need for outside encouragement.”
We anticipate far more fluctuation in prices with the reemergence of the supermarket price war. Our PetrolPrices.com apps will help you find the cheapest fuel near to you across the UK.
IMAGE CREDIT: Pixabay (Public Domain)