Supermarkets are going head-to-head with each other in a price war over petrol.
Starting today (Tuesday), Sainsbury’s, Tesco and Asda will all be cutting prices on their forecourts.
Sainsbury’s and Tesco both said they would cut prices by up to 5p per litre, while Asda plans to cut petrol by 1p and diesel by 2p per litre.
Costs have improved for motorists this year, with cuts to wholesale costs and a freeze in fuel duty announced by Chancellor George Osborne in this year’s budget.
The cuts have even contributed to the lower inflation rate, which fell to just 1.5% in May and again in August.
The Office for National Statistics said competition between supermarkets was responsible for pushing food prices down, which has also kept inflation low.
The cuts have been welcomed as children return to school and families’ time on the road increases.
The latest supermarket clash is expected to push prices down to levels last seen four years ago.
But there have been some concerns that the latest round of supermarket head-to-heads will impact upon local petrol stations.
The Petrol Retailers’ Association (PRA) said that 900 independent stations had closed between 2008 and 2013, over a third of which were serving rural areas.