Pump it up! More affordable petrol on the way

Great news for drivers – the price tag of filling up with fuel is on its way down thanks to a supermarket price war.

Asda, Sainsbury’s and Tesco have locked horns as soon as much more and cut petrol and diesel prices in a bid to win your custom – so how much can you expect to spend subsequent time you refuel?

How the petrol cost cuts measure up

Sainsbury’s and Tesco have reduce the price of both petrol and diesel by 2p per litre (to how significantly? And do we know what Morrison’s are performing – they’re in the pic) while Asda has opted for a value cap that will see clients pay no far more than 126.7p per litre of petrol and 129.7p per litre of diesel – its lowest cost given that January 2011.

So how have the supermarkets been able to reduce expenses at a time when professionals are predicting widespread oil price tag increases?

International concerns

Widespread shale oil extraction in the US has led to the market becoming less reliant on importing oil from the Middle East, offering scope for value cuts.

As a result, ongoing political troubles there and in Russia and Eastern Europe haven’t caused the supply troubles that many feared.

A stronger pound has also helped to keep wholesale costs down for UK importers, and it appears this reduction is finally being passed straight on to buyers.

It’s also the case that supermarkets occasionally use fuel as a loss leader to get folks into the retailers and acquiring groceries and other goods.

Fuel firms

As but it’s uncertain regardless of whether the principal petrol providers, such as Shell and BP, will join in the cost war – which signifies there could be a return to the fuel pump postcode lottery we saw final summer season.

But don’;t forget, driving out of your way to save a few pence per litre at the pumps can end up costing you more.

Follow the 2-for-1 rule

Last summer, MoneySuperMarket developed the ‘Focus on Fuel’ report and located virtually 4-in-every single-10 motorists took a lengthy detour on their usual route to save a penny on a litre of fuel, meaning they could be wasting about £8 per month on petrol and as considerably as £21 per month on diesel.

So if you’re looking for less costly petrol, often hold the ‘2-for-1 rule’ in mind and never travel more than 2 miles to save 1p on a litre of fuel as that is the point when going out of your way for a saving becomes a false economy.

If you want to perform out regardless of whether less costly fuel is placing you out of pocket, check out our handy Fuel Expense Calculator.

And bear in mind that paying less at the pumps is just a single way to cut operating charges. For a lot more ideas check out Jess Bown’s post, How to beat any fuel price tag hikes.

Pump it up! More affordable petrol on the way