Asda leads the way with latest fuel price cuts

Asda leads the way with latest fuel price cuts
Just one week after the RAC put pressure on fuel retailers to pass on wholesale cost savings to motorists, Asda has obliged – announcing a 2p a litre cut.

In a move expected to prompt other major supermarkets to reduce pump prices, Asda will lower the cap on both its petrol and diesel prices to 111.7p per litre from Friday.

On June 8, the RAC warned major retailers not to use the General Election as a distraction, claiming as much as 4p could be shaved off the cost of a litre of diesel, and 2p off unleaded, in the wake of further reductions in the price of oil.

It now hopes this latest piece of “excellent news” will lead to greater transparency around diesel prices.

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The cost of a barrel of oil dropping to $47 (£36) represents a 13% plunge inside just over three weeks, and has empowered the Leeds-based superstore to alter prices at its 305 filling stations.

Its head of petrol trading Dave Tyrer, says the move shows Asda is “once again leading the way” in helping long-suffering drivers up and down the country.

“Our new national price cap of 111.7p per litre on both unleaded and diesel will be welcomed by the millions of drivers who will be starting to plan their summer holidays,” he added.

In early May the UK’s major supermarkets reduced fuel prices twice inside three days, following similar scrutiny from the RAC.

RAC fuel spokesman Simon Williams described Asda's announcement as excellent news, as he urged other retailers to follow suit and lead to a much-needed “price-cut chain reaction” across the UK.

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He added: “While the value of the pound has fallen since the election, the price of oil has also reduced, bringing down wholesale fuel costs which should rightly be passed on to motorists at the pumps.

“Unfortunately, a cut to the price of diesel is long overdue as its wholesale price has been lower than petrol's for weeks, with little reflection of this on the forecourt.

“Hopefully, this will be the start of greater diesel price transparency.”

Copyright Press Association 2017. Motoring News articles do not reflect the RAC's views unless clearly stated.