Petrol prices are currently at their lowest level in three years. Not only has the petrol price fallen, it was confirmed in last week’s Budget that this has been frozen for a fourth year. Any changes to be noticed at the pumps for the next year will be down to the retailers and not the government.

On average, drivers are now paying 129.5 pence per litre – compared to last year’s 138.4p per litre. Diesel prices are also at their lowest, dropping by almost 10p per litre over the last 12 months.

Despite lower petrol prices, shoppers will still look for a bargain on their fuel. According to the AA 60% of drivers are forced to cut back on car use or hold back on other spending to compensate.

The cheapest fuel is undoubtedly found at supermarket petrol outlets, with ASDA, Tesco, Sainsbury’s and Morrisons beating any other petrol companies by a considerable amount, but out of the 10,000 odd stations across the UK, very few are operated by supermarkets.

With the exception of ASDA, who have a national price cap and are the cheapest of all brands (at 126.6p per litre for petrol and 132.7p per litre for diesel), petrol figures vary at any one time depending on region and retailer.

Tesco currently charges 127.6p for petrol and 134.6p for diesel but are offering a Clubcard Fuel Save scheme. This means that for every £50 spent in store, customers are rewarded 2p off a litre with a maximum of 20p off per litre. The discount accumulates throughout the month to be used at anytime in any of their petrol stations.

On average a household will spend £320 a month at a supermarket, which would equate to a discount of 12p per litre. This would make petrol in Tesco cost 115.6p a litre over the month – beating ASDA’s market-leading price of 126.6p.

Big petrol companies typically charge more than supermarkets, with BP costing an average of 131p per litre and Shell 129.7p, but if there is an ASDA in a town other petrol stations and supermarkets will often try to match the prices. If not – they will often only be 2-3p extra per litre.

So if ASDA is so much cheaper why would anyone go anywhere else?

-          Most people will go to the closest station to fill up.

-          Loyalty – if a customer shops at a certain shop they will tend to get there petrol there too

-          Loyalty/Points cards – Club cards, Shell Drivers rewards cards and Nectar cards will tempt people to visit certain petrol stations to gain points.

-          If drivers are on a long journey they will often have no choice but to visit the motorway service stations.

Don’t forget – when you next fill up, check out the prices of petrol and look out for the best value for money!

- Danielle Wheeler