Supermarkets have already started slashing prices with Asda charging 109.9p a litre for unleaded and 121.9p for diesel at its 171 forecourts. Morrisons had already knocked 2p a litre off diesel and unleaded and Tesco has pledged to match the lowest pump prices 'almost immediately'.
The AA has welcomed the reductions but accused some forecourts of not dropping prices in line with falling crude costs. Oil has dropped to around 115 dollars a barrel from its record high above 147 dollars last month.
AA spokesman Paul Watters said some regions were not getting cheap enough fuel. 'Cheapest prices in many southern towns are still two or three pence above what drivers are paying in areas where competitive supermarkets are engaged in a dogfight,' he said. 'Since the all-time high of 119.7 pence per litre for petrol and 133.25 for diesel, the wholesale price for petrol coming into the UK has fallen 18% and 22% for diesel. This has yet to be reflected in average UK prices.'