Petrol price reduction gets cautious welcome

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Drivers will benefit from cheaper petrol when supermarkets cut their prices today.

First, Asda announced that it would cut as much as 2p off a litre of petrol this morning.

Then rival Sainsbury’s announced a similar up-to-2p reduction which also takes effect today.

Asda customers will pay no more than 133.7p a litre for their petrol from tomorrow. Its diesel remains at 139.7p a litre.

A spokesman for Leeds-based Asda said: “We always aim to be the first retailer in each part of the country to drop prices when costs are falling and the last to put them up.”

An AA spokesman said: “Last week, our fuel-price report pointed to a 4p drop in petrol wholesale prices working its way through the system.

“UK average petrol pump prices reached a late summer high of around 140p a litre in mid September and sat there for more than a fortnight,” he added.

“More than a month on, the average petrol price yesterday was down to only 138.70p a litre.”

He said that the supermarkets’ announcement yesterday was welcomed – but cautiously.

The AA spokesman added: “Unless the rest of the market reflects the lower cost, it’s a case of the same old story – prices up like a rocket, falling like a feather.”