The RAC is calling on supermarkets to cut the price of petrol and diesel and follow Asda's lead following a $5 fall in the price of a barrel of oil.
Asda has announced a 2p a litre cut in petrol and diesel today (Friday, February 9).
The wholesale cost of both petrol and diesel has dropped in the last fortnight due to a 7% drop in oil from $70.55 on 25 January to $65.58 on Wednesday (February 7).
The RAC believes fuel retailers now have the scope to cut their pump prices significantly, which currently between them average 119.49p for petrol and 122.13p for diesel, which would spark similar reductions around the country’s 8,500 forecourts.
Unleaded petrol on Wednesday averaged 122.17p and diesel 124.91p a litre across forecourts in the UK.
RAC fuel spokesman Simon Williams said: “Motorists will be pleased Asda has led the charge on reducing the price of fuel just a day after the RAC called for a cut. This should spark a chain reaction with the other supermarkets and fuel retailers across the country."
The RAC says there is plenty of scope for the supermarkets to cut pump prices as there are several money-off promotions tied to certain levels of spend in store as well as some big regional anomalies in price.
In Taunton in Somerset, for example, supermarkets are selling petrol for around 112p a litre, which is 10p lower than the UK average and 7p lower than the supermarket average.
The recent drop in the price of oil has been caused by an unexpected increase in fuel stocks in the US, sparking fears of oversupply into what is traditionally a season of lower demand.
In addition, the North Sea Forties pipeline, which was shut down in December due to a crack, has just reopened. This will bring 450,000 barrels of Brent crude oil a day on to the market.