Morrisons supermarket has taken the lead in expected petrol price cuts by slashing the cost of fuel at its forecourts by 3p.
The move comes just days after the AA called for petrol prices to reflect the falling cost of crude oil. The wholesale cost of oil plummeted during August, falling to $113 a barrel from heights of $147 the previous month. But despite supermarkets waging a price war against each other earlier in the summer in a bid to tempt drivers onto their forecourts, the AA says the savings from cheaper crude oil have yet to be fully passed on to drivers and petrol prices still have a way to fall.
Edmund King, president of the AA, says: "We expect UK pump prices to fall sooner rather than later - and significantly. The country has already had a taste of falling wholesale prices not being passed on quickly enough to beleaguered UK consumers this summer."
Morrisons 3p price cut brings the cost of its petrol to 117.7p per litre (national average) and diesel to 119p per litre. The cut, its fourth this year, is available across all its store's 285 forecourts.
Phil Maud, petrol director at Morrisons, says: “The cost of crude oil has dropped in recent days and we are now starting to see those falls being reflected in the price of the refined product as well. As we always do, we pass those savings onto our customers as soon as we can and that’s what we are doing today."
According to the AA’s latest fuel price report, supermarkets remain the cheapest place to fill up your tank. Unleaded prices fell by 7.7p per litre to 110.7p over August, while UK average prices fell by 6.3p per litre to 113.2p.
Diesel prices also fell during the month, with the UK average cheaper by 7.5p at 125.6p per litre,
The price difference between unleaded and diesel has fallen from 13.6p to 12.4p per litre.
The AA report also shows London recorded the highest price for unleaded at 114.6p, followed by Northern Ireland at 114.5p. In contrast, Yorkshire and Humberside, and the North West, recorded the lowest price for unleaded at 112p.