Asda Fuel Price Reduction Could Spark Fuel War

Tue, 26 Jun 2007
 
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Asda, the UK’s second largest supermarket chain, has cut the price of its fuel by 2p per litre.

Motorists can now fill up at any of Asda's nationwide stores for just 93.9 per litre for both diesel and unleaded petrol, compared to the 95.9p per litre price at both Sainsbury’s and Tesco .

With both rival retailers expected to follow suit with price reductions, a fuel war could be set to spark.

In addition to the price cut, all Asda credit and store cardholders are entitled to a further two pence per litre discount when using their card to pay for their fuel .

The price drop, which was announced last night, follows a recent AA announcement that it is costing Britain's motorists £77 more a year to keep a small family car on the road.

"Not only have we rolled back the price of petrol putting more pounds in people's pockets but customers from Falkirk to Falmouth, Brighton to Belfast, Cardiff to Coventry - in fact wherever you fill up at Asda - are guaranteed exactly the same price at the pump," said David Miles, Asda’s petrol director .

Although the price reduction is good news for drivers, it will not be welcomed as much by smaller petrol retailers who are already trying their hardest to compete with supermarket fuel prices.

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