Supermarket price war drives down petrol costs

A price war at the pumps has led to a host of major supermarkets cutting the cost of petrol.

Asda fired the first shot by taking 2p per litre of its prices and capping costs nationwide at 133.7p per litre for unleaded and 137.7p per litre for diesel.

Sainsbury's and Tesco followed suit by cutting prices of both unleaded and diesel by 2p per litre, while Morrisons took off 3p per litre of unleaded and 1p per litre of diesel.

Morrisons had already cut its prices last week, citing a fall in wholesale prices and an improved exchange rate for its ability to pass on savings to customers.

Regional variations mean it's difficult to say which supermarket is now cheapest, but Asda customers know there is a cap on what they pay, no matter where they live.

Hope for drivers

Edmund King, president of the AA, said: "We predicted these cuts last week, with oil down to its lowest level in a month and the pound gaining on the dollar after its recent fall. This is perhaps another glimmer of sunlight for drivers after a hard, wet, pot-holed and expensive winter of driving."

Petrol prices comparison site today said the average UK cost of a litre of unleaded in 137.48p and 142.06p for a litre of diesel.

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