ASDA have just revealed to PetrolPrices that they will be capping their forecourt prices from today, with unleaded capped at 116.7p per litre and diesel capped at 118.7p per litre. This is on top of price cuts from last week after the RAC called for supermarkets to cut their prices due to the price of a barrel of oil dropping.

The price of wholesale oil has now dropped to $61.46 and with the exchange rate stronger than last week, it seems like there is no reason for supermarkets not to cut their forecourt prices. It is also worth mentioning that smaller retailers may feel pressured but hopefully a cut will come from them in the next few weeks.

Last Thursday the price of oil dropped and the RAC called for the price of fuel to drop in supermarket forecourts as they are often the first to react to price cuts in oil. Initially, the RAC asked for a 3p price cut, and while there was a drop in some areas, others were barely affected and the overall reduction around the UK was 0.5p, which was hardly noticed by most UK drivers. Yesterday morning the RAC called for further cuts, and as far as we understand ASDA is the first to take action.

Jason Lloyd, Managing Director of PetrolPrices says “ASDA’s decision to cut their prices by 2p and capped for the whole of the UK shows why they lead the market on price. In truth, the RAC should get some credit for prompting them to make this change, but we’re sure the rest of the market will follow suit over the next few days. Wholesale costs have been falling over the last week so this is not unexpected but its a welcome boost to Britain’s drivers when the cost of being a motorist is at its highest ever recorded levels, which is discouraging some off the roads.”

At the end of half-term, this cut should come as a welcome relief for families who have been travelling around and need to fill up. This is an excellent result for drivers around the UK, and will hopefully encourage other supermarkets to cut their prices even further.

UPDATE: At 12:36 pm, on the 16th February 2018, Morrisons tweeted that they will be cutting their prices by up to 2p a litre.

UPDATE: At 4:13pm, on the 16th February 2018, Sainsburys tweeted that they will be cutting their prices by up to 2p a litre on unleaded and 1p a litre on diesel.

We aim to update this story as more news comes in from other supermarkets.

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