Asda have announced petrol and diesel price cuts of up to 3p a litre following a further decrease in the wholesale cost.
The supermarket said its new national fuel cap means drivers will be charged no more than £1.197 per litre for petrol and £1.317 for diesel at its 319 petrol stations throughout the UK.
It is the retailer’s third petrol price reduction in under two weeks, bringing the cost down by up to 8p per litre.
Prices dropped by 8p per litre in two weeks
Asda’s previous cut was matched by rival supermarket chains Tesco, Sainbury’s and Morrisons.
Asda’s Senior Fuel Buyer, Dave Tyrer, said: “Our new national price cap of 119.7ppl on unleaded and 131.7ppl on diesel will be welcomed by the millions of drivers across the UK.
“Further decreases in the wholesale market mean we are able to reduce our prices again, seeing our unleaded price dropped by up to 8ppl in just under two weeks.”
The RAC’s perspective
RAC fuel spokesperson Simon Williams said: “While this is a welcome price cut, it has been an extremely long time coming.
“The cost of buying petrol on the wholesale market has dropped like a stone so we should be looking for at least 5p to come off the average price of unleaded at the pumps of 128.84p.
“On the face of it, retailers are banking over £2.75 every time drivers fill-up their tanks with petrol. If they were playing fair and passing on the savings they are making as a result of lower wholesale prices then drivers would be enjoying a saving of this amount every time they visit the pumps.
“For this reason we believe Christmas has come early for fuel retailers across the board this year as they have been reaping the benefits of some of the biggest margins on fuel the RAC has seen in almost four years.
“We badly need the three other supermarkets to keep up with Asda and to fully participate in a meaningful ‘supermarket pump price war’ – at the moment it’s sadly very much a cold war.”