Supermarkets cut fuel pricesMorrisons, Asda and Tesco reduce pump prices

10 May 2011

MorrisonsThree of the UK's main supermarkets have cut petrol prices - it's the first fall in fuel costs since the 1p cut in this year's Budget.

Morrisons was the first to drop its fuel prices - announcing yesterday that it would cut petrol by 1p per litre and diesel by 3p per litre across all its forecourts. It also promised diesel would be no more than 140p per litre and that petrol would fall to an average of 135.2p.

Asda then followed by announcing an identical cut to petrol and a 4p cut on diesel, stating that maximum prices at its filling stations would be 135.7p per litre for diesel and 134.7p per litre for petrol.

Tesco joined in shortly after, saying it would cut unleaded prices by 1p per litre and diesel by 3p per litre, matching Morrisons.

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No price war yet

However, the latest cuts don't seem likely to trigger a price war on fuel. And, in spite of the supermarkets reductions, diesel and are still more expensive than they were before the Budget. Compared with 2010, they're 13% more expensive, due to rising oil prices and increases in VAT and fuel duty.

The cuts come after the AA called on fuel sellers to pass on the falling price of wholesale petrol, which has been dropping for the past month.

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