Cheaper supermarket fuel for drivers

Motorists can take advantage of cheaper fuel today as hundreds of supermarket filling stations are cutting their prices.

Asda is leading the march by knocking 2p a litre off its petrol and diesel, while Sainsbury announced soon after it would be following its rival's lead.

Tesco said it's cutting prices by "up to 2p a litre".

Drivers will be paying no more than 131.7p a litre for petrol and 137.7p a litre for diesel at Asda filling stations

Asda petrol trading director, Andy Peake, said: "Today's move shows that we are once again leading the way in reducing the price at the pump.

"Unlike other retailers, our price cuts benefit everyone across the country, meaning that no one filling up at Asda will be forced to play a postcode lottery."

Edmund King, AA president, said: "Once again the supermarkets have led the way on fuel price reductions. We have said there is scope for price cuts given wholesale price falls and welcome the move and hope all the other retailers follow.

"We know that three quarters of AA members have been cutting back on journeys, cutting back on household expenditure, or cutting back on both, due to the high cost of fuel. This reduction will go a little way towards helping families and businesses keep mobile".

But the news hasn't been welcomed by all motoring organisations. RAC technical director David Bizley said: "These price cuts are welcome, but they only solve part of the problem.

"The price that motorists pay on the forecourt is almost 60 per cent tax, with a recent study showing that a record 81p from every litre of petrol sold now goes to the Treasury in fuel duty and VAT.

"What the British economy desperately needs is fairer-priced fuel on a long-term basis. As a supporter of (campaign group) FairFuelUK, we are lobbying the Government to reduce the amount of tax on petrol and diesel, as we believe this will help to stimulate the economy and generate more income for the Treasury.

"We are calling on the Government to increase transparency and make it a requirement for fuel retailers to print the duty on receipts so that the motorist can clearly see how much of the price is tax, how much is VAT and how much is going to the retailer."