Asda price cut fuels forecourt war

ASDA has fired the first shots in a supermarket sales war by cutting fuel prices, following claims retailers were refusing to pass on a fall in wholesale costs.

It reduced the price of unleaded by up to 3p a litre and diesel by up to 2p a litre.

Drivers will pay no more than £1.25 per litre for unleaded and £1.28 for diesel at its 318 filling stations. Fuel prices have risen almost every day since the end of April despite wholesale costs falling by around 2.5p a litre since May 24.

The RAC says wholesale falls have been caused by the US drilling for more oil, increased Russian output and speculation that oil producing group Opec will end its curb on production.

On Monday, average forecourt prices were £1.29 for unleaded and £1.33 for diesel – the most expensive since September 2014.

Asda chief executive Roger Burnley said: “We know that the cost of living is centre of mind for our customers and we will always do whatever we can to reduce that burden.

“Customers can trust us to lead the way when it comes to lowering the price of fuel and putting cash back in their pocket.”

RAC spokesman Rod Dennis said: “At last retailers have done the right thing and started to cut prices at the pumps. With petrol prices rising at their fastest rate in 18 years last month, millions of households and businesses will have been feeling the effect.”