Sainsbury's and Tesco let go of savings from pound's increase versus dollar, and drop the price of fuel
The petroleum prices will hit almost four-year low right after the Sainsbury's talked about their drop of price per liter.
The two big supermarkets decreased their prices few days ago. According to Asda, it will affect the prices of diesel and unleaded gasoline.
Petrol has been put in the front line of war between Britain's biggest supermarkets. Tesco has been enticing consumers by showing savings on petrol, when they buy from their stores.
According to Tesco's fuel official, Peter Cattell, "as Britain's largest petroleum retailer, this will mean more vehicle owners can do real savings."
As per RAC's statement, the pound had been rallying versus the US dollar, since Scotland cast its vote against independence occurred. This will bring petrol price down since it uses US dollars for pricing.
"The wholesale price for diesel and gasoline has dropped for the last three months and thus vehicle owners are taking advantage of the low prices for more than three years. However, this price will lead us to a new one, similar of which everyone has not experienced since 2010 and 2011."
According to RAC, the average price for every liter of unleaded gasoline few days ago was over 120p. There is a decrease of less than 5p on that, which is still higher compared to the prices in supermarkets, would get average prices to a cheapest price that did not happen since December of 2010.
A longer period of low gasoline prices can be advantageous for the chancellor though stabilizing inflation and lowering costs for small enterprises and low-to-middle class households.
But the Petrol Retailers Association or PRA, which has separate refilling stations, confirmed that price reduction in supermarket will bring pressure on local courtyard that usually give a huge service to rural areas. It was stated around 900 sole operators had stopped its operation from 2008 to 2013, which is over one-third of the countryside.
