Asda Reduces Petrol Prices

Fri, 05 Jan 2007
 
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Asda, the UK’s number two in the supermarket world, has given motorists a much needed boost by dropping the price of petrol and diesel at its 167 forecourts.

Oil costs have dropped to an 18 month low in the last two days at around $55.45 a barrel in New York, which has given the supermarket the chance to pass savings on to drivers.

The price of diesel has been cut by 1.5p per litre, bringing it to a flat rate of 89.9p at its numerous stations.

Unleaded petrol prices have also had a modest cut, dropping 0.2p to a price cap of 85.9p a litre.

The reasons behind Asda’s customer boosting move is due to the price of oil, which has fallen on both sides of the Atlantic due to a mild winter in the United States, helping to reduce demand for heating oil and other products .

Another contributing factor was higher than expected fuel stockpiles, which caused oil prices to fall by more than $2 a barrel on Thursday.

Crude oil prices had been at a peak of $78 a barrel in the summer, forcing some pump prices up to a £1 per litre.

This time of year normally sees high diesel prices as demand for oil to heat homes increases.

Asda told reporters that its diesel is currently at its cheapest for more than a year.

Spokesman for the food retailer, Andy Brem said, "The unseasonably mild weather so far this winter has reduced heating oil consumption across Europe and the US."

"This, combined with a fall in the price of crude oil, has helped push prices lower."

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