Supermarkets in petrol prices 'war'
Four leading supermarkets have all announced a cut in their petrol and diesel prices ahead of the bank holiday weekend.
Morrisons led the way by cutting the price of its petrol by up to 2p a litre and diesel by 1p a litre.
Then Asda and Tesco made announcements. Asda said that from Friday morning drivers filling up at any of its 217 forecourts nationwide would pay no more than 129.7p a litre for petrol and 134.7p a litre for diesel.
Tesco said it would be reducing its petrol and diesel prices at its 497 forecourts by up to 2p a litre.
AA public affairs head Paul Watters said: "Today's supermarket price war comes on the back of yesterday's 40-dollars-a-tonne fall in petrol wholesale prices across Europe - equivalent, with VAT, to a 2.5p-a-litre fall at the pump. However, just as one swallow doesn't make a summer, two days of commodity price falls doesn't signal the end of drivers' pump misery.
"If this trend continues, that would be a good start to the summer season but no-one should under-estimate the market's ability to send prices shooting up again, often just on pure speculation."
Mr Watters said that on Wednesday the average UK price of petrol fell to 134.77p a litre and diesel to 139.24p. This compared with start-of-the-year prices of around 132p for petrol and 140p for diesel.
He added: "However, in parts of London, non-supermarket petrol can be bought for as little as 129p a litre. Even so, the fact that petrol this time three years ago was 121.42p puts current fuel costs in stark contrast."
RAC technical director David Bizley said: "With thousands taking to the roads for this first bank holiday weekend of the summer, it's great to see the supermarket fuel price-cutting trend of recent weeks continuing. It only seems fair that motorists should benefit from the reduction in wholesale fuel prices."