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Asda announces petrol and diesel price cuts

 

Monday 24 September 2012 12:03 EDT
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Supermarket customers were set to benefit from lower fuel costs today after one of the country's biggest supermarkets announced price cuts.

Asda, Britain's second-biggest supermarket, pledged to cut up to 3p a litre off the price of both unleaded and diesel and cap prices at 135.7p for unleaded and 139.7p for diesel.

The cost of oil has fallen in the past 10 days with Brent crude in London sliding 6% to around 110 US dollars a barrel - although this is still 25% higher than in mid-June.

Earlier this year the Office of Fair Trading (OFT) launched a review into whether reductions in the price of crude oil are being passed on to motorists.

It said it will explore a number of claims about how the road fuels sector is functioning, including whether supermarkets and major oil companies are making it more difficult for independent retailers to compete.

Many economists have warned that the rate of inflation is not likely to fall as rapidly as forecast by the Bank of England in the months ahead due to pressure from oil prices.

Morrisons shortly followed suit and said it will reduce its pump prices by up to 3p per litre from tomorrow morning in every area that it trades.

The country's biggest supermarket Tesco later announced its own price cut.

A spokesman said: "Tesco is dropping fuel prices by up to 3p per litre today. As Britain's biggest petrol retailer with 490 forecourts, more motorists will make savings at the pumps at Tesco than at any other fuel retailer."

PA

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