Fuel price cuts ‘should be bigger’

Big supermarkets have announced further price cuts at the pumps, but the cuts should be bigger according to the RAC.

Asda, Sainsbury’s, Tesco and Morrisons will all drop the price of petrol and diesel by 1p per litre, yet RAC fuel spokesman Simon Williams claims this is not a true reflection of wholesale costs.

‘We would like retailers to make bigger cuts as wholesale prices indicate that there is a saving of at least 3p a litre on petrol and well over 2p on diesel that they should be passing on at the pumps,’ he said.

‘If (retailers) were to pass on more of these savings, we would see petrol heading back towards the six-year low average prices we saw at the beginning of the year.’

The cost of a barrel of oil has remained under 52 US dollars since early August, driven by an over-supply of oil, giving retailers greater freedom when it comes to lowering the price of petrol and diesel.

Petrol currently stands at an average of 109.2p per litre, while diesel is 111p. In early February, the average petrol price was 106.9p – the lowest for six years – and Mr Williams wants to see it heading back in that direction.