A supermarket price war is behind the drop in fuel prices, but the AA warns that not everyone is seeing the benefits. Wales, Northern Ireland and Northern England have the lowest prices.

The AA says average petrol prices have fallen below 150 pence per liter for the first time since Russia invaded Ukraine last February, while the latest RAC figures show the average unleaded petrol price is 148 pence, with a motorist in Cardiff saying that Asda in Cardiff Bay was selling unleaded petrol for 142 pence on Friday afternoon (20 January).

PetrolPrices.com, which compares prices between cities, shows that the cheapest petrol in Cardiff is 141.7p at Morrisons in Penarth and 142.7p at Asda stores in Coryton, Cardiff Bay, Lequity and Pentwyn, and the same price. at Morrisons on Newport Road and at Llanishen.

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In Swansea, it shows the three cheapest places to find unleaded petrol for 141.7p: Morrisons in Morfa Retail Park, Asda in Upper Forest Way and a Texaco garage in Llansamlet.

This is down from a record high of 191.53 pence in July, and the AA said the drop in global oil prices was responsible for the drop, calling it a “huge relief for motorists”. But he said diesel still costs more than last year, at £172.21 a year compared to £153.05.

Price wars in supermarkets are also cited as a factor in the decline.

AA spokesman Luke Bosdet said it now costs around £23 less to fill a 55-litre average car than it did in July, around £82.

However, he said gasoline prices “historically remain much higher” than they should be and the end of a temporary fuel tax cut in March this year could lead to further increases.

Petrol stations in cities also charge 10p more for fuel than in rural Britain, he added.

Fuel prices started to rise last year as countries eased COVID-19-related lockdown measures, but rose when Russia, a major oil producer, invaded Ukraine, raising concerns about global supplies.

In July last year, the cost to refuel an average car was £105.29, according to automotive group RAC, while for a diesel it was £109.47.

The government has cut the fuel tax by 5p a liter since February last year to help motorists, with a total reduction of 6p including VAT, the AA reports. However, the discount is scheduled to end in March.

Motoring journalist Maria McCarthy explained to BBC Radio Wales: “Fuel prices need to come down because the price of oil is falling. We always think that traditionally you have to go to supermarkets to buy cheaper fuel because they are there to entice you to buy groceries.

“What’s happening now is prices are coming down, but only where they think it’s good for them. If you have three big supermarkets in the same area, they’re going to have a price war and they’re going to lower prices because they’re looking at each other and they want to compete.

“In another city where there might only be one of these supermarkets, they’ll keep prices high because they don’t have to fight customs.”

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