Tesco, Sainsbury’s and Morrisons have all cut their fuel prices recently, responding to a continuing drop in the price of oil. Prices had already been falling throughout July and August. On September 23rd, Tesco and Morrisons cut petrol prices in all of their filling stations by up to 2p per litre, the next day Sainsbury’s followed suit.
A barrel of Brent crude oil, which cost around $55 in January 2015, is now down to an average of $48. The big supermarkets are following the trend they set at the start of the year by reducing their pump prices of unleaded fuel by 2p per litre.
In July, diesel dropped below the cost of petrol for the first time in five years. The recent price cut has meant that unleaded fuel has now moved back to its traditional place below the cost of diesel.
The future of fuel prices
Simon Williams, the RAC’s spokesperson for fuel, has been predicting significant fuel price cuts since January 2015. In January, Williams pointed out that average fuel prices were ‘at levels not seen since January 2010’, heralding an ‘ever closer’ move to a ‘£1-per-litre average for petrol.’
In September, Williams commented:
‘This is yet more good news for petrol car drivers who have enjoyed prices coming down in August as a result of a barrel of oil staying around or below 50 US dollars since the end of July.’
fuelGenie customers at the forefront of savings
While Williams’ hope of seeing petrol at £1 per litre has yet to materialise, the quick work of the supermarkets shows a welcome trend for fuelGenie customers old and new. Tesco, Sainsbury’s and Morrisons are often the first to pass on the advantages of falling oil costs to their customers, putting fuelGenie card users at the front of the queue for the best fuel prices in the country.
Supermarket fuel is cost effective and usually the best-priced on the roads: with a fuelGenie card, which is accepted at all three of the supermarkets mentioned in this article, it’s even easier to take advantage. You can use your account to manage the total spend and fuel consumption of your drivers and vehicles.
More savings on the horizon?
Oil production continues to flourish, creating an excess in supply that has been lowering fuel prices since the start of 2015. Savings don’t extend to every segment of the British fuel market, though. Rural areas in particular tend to be left behind when oil prices fall, as independent and non-supermarket forecourts take advantage of isolated locations and captive consumer bases.
With the drop in forecourt prices holding true across all Tesco, Sainsbury’s and Morrisons forecourts, fleet vehicles using fuelGenie cards now have a cost-effective choice even in harder-to-reach parts of the country.
As for Williams’ prediction of £1 per litre petrol: that still looks still some way off, but it’s closer than it has been in nearly six years.