Petrol ‘could fall to £1 per litre’ as supermarkets begin new price war

The price of fuel could fall to �1 per litre, experts say. Image: PA
The price of fuel could fall to �1 per litre, experts say. Image: PA

The price of fuel could drop to £1 per litre amid falling oil prices, as supermarkets head towards a potential petrol price war following Asda’s announcement to cut the price of unleaded by 2p per litre.

The retailer said it would be giving motorists a “weekend boost”, which will see its customers pay no more than 109.7p per litre across its 272 filling stations.

The move, which comes into immediate effect, means that in the last month Asda has cut the price of unleaded by 5p per litre and the price of diesel by 9p per litre.

RAC spokesman Rod Dennis said: “The reason we’ve been slower to see unleaded price cuts is because the wholesale price of petrol - the price retailers buy the fuel for - has not fallen at the same rate diesel has. Diesel has been on a steady downward path since the start of May, driven by increased capacity from Asia, but the same cannot be said for petrol.

“If the conditions stay right, we could see some even lower prices in a few weeks as people return to work after the summer and the school run begins again. And if Brent Crude were to move to the 40 US dollar per barrel mark, the prospect of some enterprising retailers selling fuel for £1 per litre will make a return.”

He added: “This latest price cut from Asda, coming just two weeks after the last, will be met with cheer from drivers of the country’s 19 million petrol cars, who will have noticed that diesel drivers have been enjoying substantially lower prices for over a month now.

“This summer has been a much cheaper one for motorists than the last. The cost of filling up an average family petrol car is now around £8 less than it was last summer, and around £12 less for a diesel car.

“Fuel is a major expense for millions of families in the UK, and these latest cuts are certainly helping to ease that burden.”

Andy Peake, Asda’s senior director for petrol, said: “We’re bringing some good news to unleaded motorists following a series of diesel price cuts.

“As we head towards the busiest bank holiday weekend of the year on our roads, this new drop means drivers across the country will pay no more than 109.7p per litre for unleaded and diesel remains at a market leading 106.7p per litre at our forecourts.”

Steve Gooding, director of the RAC Foundation, welcomed the news, adding that with oil trading at the same price as it was in January, more cuts could be expected.

He added: “Also the current retail margin on petrol is almost twice as much as the long term average which is another indicator that pump prices could fall further.

“However it is worth remembering that the biggest influence on what motorists pay at the forecourts is not the oil price but taxation.”

Thomas Saveall won the Project Spotlight Volunteer award at the Citizens Advice Scotland conference. He was presented with a silver Quaich by HRH Princess Anne. Picture - Stewart Attwood''''All images � Stewart Attwood Photography 2019.  All other rights are reserved. Use in any other context is expressly prohibited without prior permission. No Syndication Permitted.

Taylor Wimpey have confirmed directly with local Councillor Nathan Wilson that the organisation retains its commitment to building a park and ride at Shieldmuir Train Station. In response to recent enquiries made by Councillor Wilson, Taylor Wimpey have advised that engagement is taking place with Network Rail over the latter’s approval procedures and that once this process is complete, work will be able to begin on site. The developer has informed the Motherwell Councillor that during the period of investigation undertaken since the commencement of building work was delayed in January 2018, an unrecorded service chamber has been discovered on site. The project cannot move forward until further clarification is provided on the nature of the service chamber and Taylor Wimpey are in the process of commissioning a contractor to assess the situation. The developer’s initial judgement is that this is likely a redundant service. A senior representative of the organisation has also informed Councillor Wilson that a member of the Taylor Wimpey production team will be sent out to inspect the vacant land following a request he made at the beginning of 2019 for maintenance work to be carried out on site should construction of the park and ride remain some time away. Councillor Nathan Wilson said: “Taylor Wimpey have communicated to me directly that the park and ride facility is a project that the organisation remains committed to delivering. “However, it goes without saying that the lengthy delay is still very disappointing and frustrating. “An unrecorded service chamber has been identified on site and progress is unable to be made until this has been investigated. “Taylor Wimpey have relayed to me that an on-site inspection of the vacant land will take place and I hold to the view that maintenance work should be carried out in the short term to improve it’s current condition. “I will continue to engage with the relevant stakeholders and re-inforce to them the importance of the park and ride project locally. Motherwell and Wishaw CAB takes home 40 per cent of the prizes

Soon after Asda’s announcement, Sainsbury’s said it would also be cutting the cost of unleaded by 2p per litre.

The reduced price will go live across the supermarket’s 300 forecourts on Saturday.

Morrisons will make the same cut to the price of its unleaded petrol, effective from 2pm.

It said that with the latest reduction, unleaded prices will be 15p a litre cheaper than 2014’s August Bank Holiday, making it £7.50 less to fill up a typical family car.

Jamie Winter, services director for Morrisons, said: “The current weakness in world markets is working in the favour of motorists because plummeting oil prices are combining with a strong pound to help us reduce petrol prices.”

Find the average fuel prices near you at petrolprices.com.