Sussex motorists can expect more supermarket petrol price cuts
Motorists in Sussex can expect to see a reduction in fuel prices at the pumps as a supermarket price war hots up.
Asda has just announced that it is to cut the price of petrol and diesel at its petrol stations. This means that no-one will pay more than 127.7p per litre for petrol and 132.7p per litre for diesel from yesterday afternoon.
Tesco and Sainsbury's announced soon after that they too will cut prices. Both Sainsbury's and Tesco say they will cut the cost of petrol and diesel by up to 2p a litre.
If they cut prices to the same level as Asda, Sussex motorists will enjoy the lowest fuel prices since February 2011.
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The price of Brent Crude oil has plunged in recent months to well below $100 a barrel which means that average fuel prices dropped by around 4p a litre in both April and May.
These latest price cuts mean that motorists will enjoy similar cuts in June too.
However, the government is set to introduce a 3p a litre increase in fuel duty from the start of August. Labour is trying to introduce a parliamentary bill to block this increase from happening, which is being backed by AA President Edmund King.
The AA confirmed that prices at Asda have fallen by around 14p a litre since the start of April, saving a large family car £10 on a fill-up.
However, the AA has said that because of the plunging wholesale costs, retailers could afford to cut prices still further and that not all retailers have passed on the same level of cuts.
The AA's head of public affairs, Paul Watters criticised retailers for cutting prices by the minimum to match competitors, in effect creating local monopolies on prices.
Mr Watters said: "We expect to see the usual behaviour of other retailers matching Asda where they need to while charging up to 4p a litre more in other towns, from southern England up into the Midlands.
"This winds up drivers, local and national politicians more than retailers seem to understand. The Government's pressure for fuel price transparency may help to reduce the postcode lottery that blights fuel prices in the UK.
"It may also address the disparity between petrol versus diesel prices at wholesale level and the price gap at the pump. In April, retailers in Europe were charging less before tax for diesel than petrol. Not in the UK, of course."