Supermarkets cut fuel prices as the cost of oil plummets

Supermarkets have reacted to plummeting oil prices by cutting 2p off the cost of diesel and petrol. The reduction marks the seventh price cut in two months, as supermarkets react to plunging world oil prices. 

Asda is knocking 2p off unleaded and diesel from 29 November, which means shoppers will pay no more than 117.7p for a litre of unleaded and 121.7p for a litre of diesel at the supermarket's 245 forecourts.

Sainsbury’s, Tesco and Morrisons have announced similar reductions, with all three supermarkets reducing fuel prices by up to 2p a litre. 

World oil prices have slumped in recent months, with the cost of Brent crude hitting its lowest value in four years. However, RAC fuel expert Simon Williams believes there could be more good news in store for motorists, as retailers react to the lower wholesale cost of fuel.

“The Brent crude price has dipped to a $70.68 a barrel, which is the lowest it’s been since June 2010,” said Simon Williams.

“We believe pump prices should fall by well over 4p a litre in the next few weeks, taking the average price of petrol considerably below the 120p a litre mark which last happened on 1 December 2010.”