Car fuelling with diesel

Supermarket fuel stations undercut rivals by £1.50 a tank

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Supermarkets across the UK are still generally offering the cheapest fuel, according to the latest AA Fuel Price Report.

The motoring organisation found that supermarket fuel stations charge on average 3.3p a litre less for petrol and 3.6p less for diesel than rival suppliers. The difference adds up to a saving of around £1.50 on a full tank on fuel.

Motorway with sign saying to check your fuel levelYet despite the competition in the market, there has been a general rise in the price of fuel in the UK over the past few months. Since mid-May, the average price of petrol has gone up another 2.4p to 111.58p a litre, while diesel is slightly higher, averaging 111.80p a litre, up 2.7p.

The AA calculates that this has added £4.80 to the monthly fuel bill of a family with two petrol cars and £2.16 to the cost of refuelling a Transit-size van.

Across the UK, average petrol and diesel prices can vary by as much as 2.5p a litre, the AA found.

Prices are highest in the South East of England, with petrol costing an average of 112.0p a litre and diesel at 112.5p. Drivers in Northern Ireland pay the lowest prices, with petrol averaging 110.5p a litre and diesel around 110.0p.

Overall, although prices have been rising, we are still paying less than we were last June. A year ago, petrol cost 5.5p a litre more on average, while diesel was 9p a litre dearer.

Commenting on the monthly report, AA president Edmund King said: "This time last year pump prices were at a pivotal point: fear of a duty increase in the Chancellor's post-election budget, after a 10p-a-litre surge in petrol prices since February. On the other hand, a 5p fuel duty rebate for remote rural fuel stations was doubling business for some.

"What we didn't know was that pump prices were about to start the decline that would lead to a collapse and £1 a litre on supermarket forecourts.

"This June, drivers have suffered yet another 10p a litre leap in petrol prices since the end of January. The doubling in the price of oil seems to have reached a plateau of around $50 a barrel. The burning question is what happens next?"

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