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Supermarkets urged to cut fuel costs now

The RAC has demanded that supermarkets make an immediate 5p per litre cut to the price of fuel. The move comes as the retail giants are accused of refusing to pass on to motorists the recent drops in the wholesale cost of oil. The RAC has demanded that supermarkets make an immediate 5p per litre cut to the price of fuel. The move comes as the retail giants are accused of refusing to pass on to motorists the recent drops in the wholesale cost of oil.

The RAC has demanded that supermarkets make an immediate 5p per litre cut to the price of fuel. The move comes as the retail giants are accused of refusing to pass on to motorists the recent drops in the wholesale cost of oil. Recent signs of a possible peaceful end to the crisis in Syria have calmed the markets and wholesale unleaded prices have dropped by up to 6p per litre since the beginning of September. So far, most of the supermarkets have refused to drop their prices, with only Asda offering a relatively paltry price cut of up to 2p per litre, depending upon location.

A spokesman for the RAC, Pete Williams, said: "If fuel retailers want the public to fully trust they are operating fairly and transparently they should reflect the drop in wholesale prices immediately by cutting prices by up to 5p a litre for unleaded and 2p a litre for diesel. Motorists are very aware that prices seem to go up faster than they come down so this really is the time for the fuel retail industry to demonstrate that that's not the case."

The Petrol Retailers Association is predicting that pump prices should drop by 4p per litre in the coming month as a direct result of the wholesale price cuts. The price cuts at Asda are making their forecourts extremely competitive, with maximum prices for unleaded and diesel at 133.9p and 138.9p per litre respectively. This compares with a national average of 138.8p and 142.88p. 

The move by the RAC comes as the inflation rate dropped from 2.8% in July to 2.7%. This modest decrease was attributed to lower air fares and slow petrol price increases in August. The alternative inflation measure given by the Retail Prices Index, meanwhile, actually rose from 3.1% to 3.3%. A previous survey carried out by the RAC in June this year revealed that 90% of motorists felt that they were 'sitting ducks' for tax grabs by the treasury. It was revealed that the treasury rakes in £40 billion a year just on fuel tax and vehicle excise duty. The same study said that 77% of motorists felt that they were struggling to make their household budgets cope with rising fuel costs.

Supermarkets have previously been accused of ripping off motorists by refusing to price match on fuel. Motoring organisation, the AA, revealed that prices could vary by as much as 6p per litre according to the local competition, or lack of it, faced by the supermarkets.

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