Petrol prices down for the bank holiday
Asda kicked it off when they bugled that they'd be cutting their prices today (Tuesday), capping petrol at 124.7p a litre and diesel at 128.7p, which is the lowest the chain have had since January 2011.
Then Sainsburys and Tesco both chipped in by saying they'd be reducing their prices on petrol and diesel too, although neither chain has a national price cap.
Supermarkets being supermarkets, they've always had the chance to offer cheaper deals for the driver, especially when tied up in points and rewards and brand loyalty type stuff.
However this move has been seen as a response to the otherwise slightly dearer independents, according to Paul Watters, AA's head of public affairs
“We have seen competitive independent retailers east of London selling petrol as low as 125.9p a litre recently, which heralded a more general move by Asda,” he said. “With its national pricing policy, that lower pricing will be spread to drivers across the UK and will spur other retailers to follow.”
“However, depressed demand is also a major influence as families in the UK, Europe and the US continue to struggle with family finances. Although pump price movements have been relatively benign this year, the trauma of price spikes from 2011 into 2013 continues to haunt drivers.”
According to the AA, the average price across the UK yesterday was 129.71p a litre, and diesel was 133.74p.
The other supermarkets are set to follow, because that's what they do.