RAC demands petrol price reductions

Local motorists could be about to benefit from a petrol price war as supermarket Asda was the first to act after the RAC demanded that reduced wholesale prices be passed on to customers. 

Petrol prices reached £1.29 per litre for unleaded and £1.28 for diesel earlier in the week - the most expensive both have been since September 2014.

Prices have shot up at the fastest rate in 18 years since April.

However, supermarket giant Asda has reduced the price of unleaded by up to 3p per litre and diesel by up to 2p.

The new national price cap means drivers will pay no more than £1.25 per litre for unleaded and £1.28 for diesel at its 318 filling stations.

Drivers have suffered a rise in fuel prices almost every day since the end of April despite wholesale costs coming down by around 2.5p per litre since 24 May.

The RAC says recent falls in wholesale costs have been caused by the US drilling for more oil than in recent years, increased output from Russia and speculation that oil producing group Opec will end its restriction on production.