Lower oil prices filter through to pumps

The recent financial crisis may be punishing, but motorists are one group of consumers getting some good news as the dip in oil prices is finding its way to the pumps.

Oil prices have fallen to their lowest level for a year at $82 a barrel and it seems cuts are finally filtering through to consumers.

Supermarket giant Tesco said it was cutting the cost of petrol by 3p a litre after rival Asda knocked off a penny at the start of the week. Meanwhile, Morrisons has cut prices five times since July.

BP has also reduced pump prices at its 300 company-owned stores by an average of 3p per litre and some sites by 5p per litre.

The average price of unleaded petrol prices across the UK on Thursday was 109.2p a litre, with diesel costing 120.6p, according to the AA.

Petrol now costs 9 per cent less than the high of 119.9p seen on July 17, with diesel prices nearly 10 per cent cheaper.

The Petrol Retailers Association said oil price changes typically take between six and eight weeks to filter down to forecourts.

AA spokesman Luke Bosdet said: "It's good to see that somebody other than Morrisons and Asda is taking the lead in dropping prices.

"Obviously we will be keeping watch to see whether we have got some towns where petrol is 3p cheaper now. We think it is quite unfair that you can be charged extra for filling up a tank just for living in the wrong town."

Phil Maud, petrol director for Morrisons, said: "We've led the way by cutting petrol prices five times since July, with the latest drop just last week, and our forecourt prices are already extremely competitive.

"We're pleased to see that Tesco are finally bringing their forecourt prices down to a similar level to the prices Morrisons customers have been enjoying for the past week."

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