Petrol price war as Asda caps cost at the pumps

Daily Mail - - News - By James Salmon Trans­port Ed­i­tor

A PETROL price war was launched yes­ter­day af­ter a month which saw the big­gest fuel price rises since 2011.

Asda led the charge with a new price cap of £1.25 per litre for un­leaded and £1.28 for diesel at its 318 fore­courts – price cuts of up to 3p and 2p per litre re­spec­tively.

Sains­bury’s quickly cut pump prices at its 311 filling sta­tions by the same amounts, fol­lowed by Mor­risons at its 333 out­lets. Tesco later an­nounced a 2p cut on both fu­els.

The news came as fig­ures from the Of­fice for Na­tional Sta­tis­tics re­vealed that the cost of petrol had leapt by 4.6p per litre be­tween April and May this year.

This put £2.53 on the cost of filling up a typ­i­cal fam­ily car’s 55-litre fuel tank and took the av­er­age price to 125.4p, the high­est since Oc­to­ber 2014.

In per­cent­age terms, fuel prices reg­is­tered their big­gest monthly hike in seven years, ris­ing 3.8 per cent.

The ONS said this rise, driven by higher whole­sale oil prices, was the sin­gle big-

‘At last, the re­tail­ers have done right thing’

gest fac­tor pre­vent­ing a fall in the cost of liv­ing in Bri­tain.

Fuel re­tail­ers have been ac­cused of ex­ploit­ing driv­ers by fail­ing to pass on a drop of more than 2p in whole­sale costs as the price of oil has started to fall.

Luke Bos­det from the AA praised Asda for tak­ing the lead but de­scribed the over­all de­lay as ‘shame­ful’.

RAC spokesman Rod Den­nis added: ‘At last, re­tail­ers have done the right thing. We could see no jus­ti­fi­ca­tion for them hold­ing on to sav­ings that they have been ben­e­fit­ing from for three weeks.’

The RAC says falls in the price of oil have been caused by more US drilling, in­creased out­put from Rus­sia and spec­u­la­tion that the oil-pro­duc­ing group Opec will ease its re­stric­tions on pro­duc­tion.

The ONS also re­vealed yesteray that the Con­sumer Prices In­dex rate of in­fla­tion had stayed still at 2.4 per cent.

Along with fuel prices, a rise in air and ferry fares had propped up the rate. A spokesman said this was due to a sta­tis­ti­cal quirk around the tim­ing of Easter.

The main drags on in­fla­tion were en­ergy bills ris­ing less than last year, a fall in the price of com­puter games and sta­ble or fall­ing food prices, par­tic­u­larly sugar, jam, syrups, choco­late and con­fec­tionary.

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