Retailers this morning announced plans to cut the price of fuel days after the RAC called for prices at the pumps to be lowered in accordance with dropping wholesale prices.
On Monday, supermarket giant Asda said it will lower the price of both petrol and diesel by up to 3p per litre.
This comes alongside their announcement of a national price cap, meaning motorists will be charged no more than 110.7p and 112.7p per litre for unleaded and diesel respectively.
Tesco is also implementing a price cut at its 500 filling stations from Monday afternoon.
The price drop takes place after October saw the biggest rise in petrol prices in the UK in 3 and a half years, while in early November, the average price of a litre of unleaded was 116.76p, with diesel at 118.67p.
This was despite wholesale prices dropping by 4p per litre in the previous two and a half weeks.
Questions were raised of retailers, who have previously had a good record of lowering pump prices in accordance with fluctuating wholesale costs.
While the news of a drop in prices at the pumps is welcomed by motorists, Simon Williams, the RAC’s fuel spokesman, says that this news has come “far too late”.
He said: “While this level of cut is clearly good news it has come far too late as the wholesale price of fuel has been falling since the end of October when the oil price began to fall again.
Retailers should have reduced their prices then rather than making one bigger headline-grabbing cut now.
The RAC called for a cut last week so it’s a case of better late than never.”