ASDA sparks petrol price war after slashing cost by 3p a litre
Asda has announced a cut in petrol prices of up to 3p a litre, driving rivals Morrisons and Sainsbury’s to immediately follow suit.
The price fall comes after motorists had faced the steepest fuel rises in 18 years, with prices going up by as much as 10p a litre.
And there had been mounting criticism that retailers had been fast to raise prices when wholesale costs had soared, but failed to respond when wholesale costs fell back.
Motorist organization, the RAC said there was "no good reason" for keeping prices as high as they were and called for an immediate 2p per litre cut on forecourt prices.
Asda has cut petrol prices by 3p a litre and diesel by 2p.
The cut will be applied to its 318 petrol stations across the country and means that drivers will pay no more than 124.7p per litre for petrol and 127.7p for diesel.
Morrisons also vowed to cut the cost of unleaded and diesel by 3p and 2p per litre from tomorrow at its 333 filling stations.
Sainsbury's also slashed their pump costs across its 311 forecourts,
The supermarkets are responding to increasing criticism as the wholesale cost of oil internationally has fallen back to $76 a barrel.
Asda boss 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."
David Pegg, Fuel buying Manager for Sainsbury’s, said: “We hope that lowering fuel prices will help customers’ budgets, and their cars, go further.”
Jamie Winter, Morrisons Services Director, added: “We’re passing on savings resulting from falling oil prices and keeping our fuel prices far below the UK average.”
Other retailers will inevitably respond rapidly. As the price war hots up, none can afford to lose vast amounts of business to rival sellers.
The national average price of fuel is 129.4p a litre for unleaded petrol, and 132.4p a litre for diesel.
The RAC branded the rise in fuel prices in May as "a hellish month for motorists" with the cost of filling a 55-litre family car rising by £3.29 to £71.18.
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