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Fuel is £2 a tank cheaper at supermarket, claims AA

Date: 19 May 2017   |   Author: Daniel Puddicombe

Brimming a petrol tank with fuel sourced from supermarkets costs £2 less than non-supermarket retailers, the latest AA Fuel Price Report has revealed.

According to the AA, filling up at a supermarket has averaged £2 a-tank cheaper than at other service stations for the third month in a row.

Petrol pump prices have fallen by 2.5p/litre since mid-April, while diesel is 3p/litre cheaper than mid-April thanks to the wholesale price of oil dropping by $5 and the pound improving against the dollar by 3%, the AA added.

A fuel price war carried out by the supermarkets also helped to cut the price of petrol and diesel at the pumps, the motoring organisation said.

However, the breakdown firm warned pump prices could increase in the near-future as wholesale petrol prices have risen by 2p/litre since Wednesday as a result of the barrel price rising.

"Wholesale prices bobbing up and down 3 p/litre every couple of months are perfect conditions for supermarket pump price battles - providing the 'big four' as a group want to play along. March through April into this month has provided them with a bumper opportunity and, for the most part, they have all grabbed it," said Edmund King, the AA's president. 

King added: "To some extent, it is understandable that, with wholesale prices bouncing up and down each month, many non-supermarket retailers will look to follow a longer-term price trend. But that leaves them out of step with the cut-price rivals and, with UK inflation heading up, turning to supermarkets for cheap fuel offers some chance of balancing family budgets."