Asda yesterday slashed fuel by 4p per litre – the lowest price in three years – raising hopes among drivers of a full-blown price war.
It means average prices at all Asda and Asda Express stores are 132.0p per litre for petrol and 137.6p per litre for diesel.
On average across the UK, a litre of petrol costs 138.6p and a litre of diesel is 145.8p.
Prices have not been so low since before the Russian invasion of Ukraine, which sparked a huge rise due to concerns about disruption to supplies as well as the sanctions placed on Russia.
It forced UK drivers to pay a staggering £900million more for fuel at supermarkets thanks to the increased margins, according to the Competition Markets and Authority Watchdog.
But now the price of oil has dropped from $80 per barrel in mid-January to below $70 – allowing for the dramatic cuts after a six-month high.
Hopes have been raised of a petrol price war after Asda slashed the cost of fuel by 4p per litre (file photo)
On average across the UK, a litre of petrol costs 138.6p and a litre of diesel is 145.8p (file photo)
Asda’s move has led to speculation that petrol prices will be slashed by others in a bid to compete, potentially dropping by 6p per litre for petrol and 3p per litre for diesel across the board.
Luke Bosdet, of the AA said that pump prices should have begun to drop ‘a long time ago.’
‘We suspect that the retailers, knowing that there was room to lower prices, were watching each other locally to see who would budge first,’ he added.
Asda chairman Allan Leighton said: ‘It’s in our DNA to give hard-working customers and their families the best value we can.’
