The wholesale price of petrol has fallen this month, following 12 weeks of rising costs at fuel stations. Therefore, this could spark a price battle between leading supermarkets to make sure they do not lose out as drivers search for the cheapest options for their petrol.
According to The AA, the average price of petrol has risen by 1.8p a litre and diesel has gone up 2p a litre over the last month. This is despite wholesale petrol costs plummeting by 3p a litre, falling from early September.
Supermarkets remain the cheapest place to refuel cars, with many averaging 128.1p a litre for petrol, compared with 132.7p at other retailers. However, this still does not reflect the slump at a wholesale level, with motorists feeling the pinch of rising fuel costs.
Luke Bosdet, fuel price spokesman for The AA, said drivers could benefit from £1.50 off their usual petrol costs if retail prices follow wholesale trends.
“The key question is to what extent and how quickly the fuel retailers decide to pas on the savings,” he noted.
Mr Bosdet stated that this has trigged pump price battles among supermarkets in the past, while it could also lead to oil companies trying to undercut supermarkets and steal their loyal customers while stores hold out on reducing their charges.
Drivers will be eager to cut the amount they spend on their fuel after petrol prices jumped to a four-year high of over 130p a litre. The last time fuel was this expensive was August 4th 2014 when it reached 130.13p per litre.