SUPERMARKET Asda has agreed to cut its fuel price after the RAC hit out at the soaring cost of petrol and diesel.

The RAC said there is 'no good reason' why fuel retailers are refusing to cut prices, a motoring organisation has claimed.

Forecourt prices should be reduced by 2p per litre (ppl) to reflect a drop in wholesale costs, according to the motoring group.

And this morning Asda, which currently prices unleaded at its Wheatley garage at 126.9p, has said it will lower the price by up to 2p nationwide to no more than 125p per litre. 

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

Oxfordshire forecourt prices currently stand at up to £1.29 per litre for unleaded and £1.33 for diesel.

Yet only last week, the AA reported the highest price seen in the south east for unleaded was £126.4p.

It makes diesel and petrol prices at their most expensive in the UK since September 2014.

But where's the cheapest? 

Tesco in Abingdon is currently offering the cheapest unleaded prices in the 10-mile radius of Oxford, at 125.9p.

But prices range by as much as 4p a litre depending on which pumps you choose, with the Esso garage in Eynsham charging 129.9p.

  • Tesco Abingdon, Marcham Road

Unleaded - 125.9 p

  • Sainsbury’s Heyford Hill

Unleaded – 126.9p

  • Asda, Wheatley (soon to reduce to max 125p)

Unleaded - 127.7p

  • BP, Vineyard, Abingdon

Unleaded – 129.8p

  • Esso, Eynsham Express

Unleaded – 129.9p

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 ongoing speculation oil producing group Opec will end its restriction on production.

RAC spokesman Rod Dennis said: "Our data shows it's high time retailers cut the price of petrol and diesel at the pumps.

"We see no good reason for them to wait before passing on savings they are benefiting from.

"Motorists really felt the impact of rising prices in May, when the cost of filling up apetrol family car jumped by around £3.30 in a single month.

"We are now well into June, and drivers are still waiting for some relief to rising prices.

"There remains a risk that the cost of a barrel of oil could go up again.

"In such an instance the retailers are unlikely to pass on any savings they have banked during this period, but instead will start passing on future increases at the pump."