Fuel prices have been smashing records since the start of the year and with the general cost of living on a steep incline, households are battling to stay financially afloat. However, amid criticism that the “big four” supermarkets have kept their fuel prices staggeringly high despite once being the cheapest place to go, Asda announced a cut in petrol and diesel prices last week to “help motorists save money”.
Amongst several other petrol suppliers, Tesco, Morrisons, Sainsbury’s and Asda have all been hit with criticism for not reducing their costs in line with falling wholesale prices.
But on Friday, Asda announced it had cut the cost of its unleaded petrol by 5p per litre and diesel by 3p per litre.
The latest price reduction follows an initial cut of 4p per litre earlier in the week, meaning the supermarket has overall reduced fuel prices by 9p per litre on petrol and 7p per litre on diesel since the start of last week.
Commenting on the price drop, AA fuel price spokesman Luke Bosdet said: “Asda’s price move is impressive, in effect cutting 10p a litre off the UK average price of petrol.
“That’s potentially a fiver off a tank for those filling up, compared to the artificially-high prices on too many major retailer forecourts and in too many towns.”
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“First, it was a few dozen small independent forecourts showing up the big boys. Now, Asda has called them out with on average a fiver off the cost of a tank of petrol.”
How much will I be paying at Asda pumps now?
Asda’s fuel price cut means on average, you’ll now be paying 174p per litre for unleaded petrol and 185p per litre for diesel.
This places Asda petrol prices significantly lower than the UK’s average as according to Confused.com’s fuel price index, the current average cost of petrol sits at a hefty 187.3p per litre, while diesel prices rest at 195p per litre.
However, despite this generally being a step in the right direction, retailers still have a long way to go and fuel prices still don’t entirely reflect the market.
RAC fuel spokesman Simon Williams said: “Following seven consecutive weeks of wholesale prices falling, we’re relieved to see the supermarkets finally reducing their prices a little.
“Sadly though, the UK’s biggest fuel retailers aren’t cutting their prices at the scale they should be, given the wholesale prices of both fuels – what retailers pay themselves – have dropped so much.
“This is one of the worst examples we’ve seen of pump prices falling like a feather despite the wholesale market plunging.
“The weekly delivered wholesale cost of petrol has dropped by a huge 19p since early June, from 151p then to just 132p last week.
“When it comes to diesel, the weekly delivered wholesale price has fallen by 15p a litre from 161p in mid-June to 146p last week.”
With wholesale prices continuing to drop, the RAC calls on all fuel retailers across the UK to help with living costs by passing some of the savings they are benefitting from onto drivers.
Mr Williams said: “We continue to call on all major fuel retailers to go much further in reducing their prices in the coming days to ease some of the burden on drivers during what is the costliest summer ever on the roads.”
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While we wait for further price reductions in fuel if and when they do, Express.co.uk has looked into the cheapest places in the UK to fill up your tanks with petrol and diesel.
Cheapest places to buy petrol and diesel in the UK
According to the average fuel price index updated weekly by Confused.com, the cheapest place to currently buy petrol in the UK is the Isle of Man at 170.7p.
Lerwick is reported to be the second cheapest place on average to buy petrol, coming in at 177.1p.
Belfast ranks third at 181.6p for petrol, then Lincoln at 182.8p, followed by Carlisle, reaching 182.6p on average.
The cheapest areas to buy diesel vary slightly.
According to Confused.com, Belfast is the cheapest place in the UK to buy diesel, charging an average of 188p.
The Isle of Man ranks second, charging an average of 188.8p for diesel.
Lincoln is third with 190p, followed by Carlisle with 191.5p, then Hereford at 193p for diesel.
Luton, Milton Keynes, Sutton, Salisbury, and St Albans are reportedly the most expensive places to buy petrol, charging averages ranging from 190p to 191p per litre.
Luton, Coventry, Reading, Lerwick, and Sutton are reportedly the most expensive places to buy diesel in the UK, with average prices ranging from 198.4p to 198.1p per litre.