Price war reignited by oil falls

A petrol price war is seeing major fuel retailers BP, Shell, Esso, Morrisons and Asda slash prices at the pumps in response to the falling cost of oil.

Supermarket chain Morrisons announced it is cutting the price by 3p to an average of 107.7p for unleaded and 119.2p for diesel. Rival Asda and fuel giant BP have responded with their own reductions.

Asda cut prices to 106.9p a litre for unleaded and 118.9p for diesel, while BP said it was dropping its prices by as much as 3p a litre at most of its company-owned sites across the country.

Esso joined the war and said it will be reviewing its prices. A spokesman said fuel sales are a "highly competitive business and we vigorously compete with competition".

Trading director at Asda, Darren Blackhurst, called on rivals to match its move in the price war. He said: "We are calling on other retailers to follow our lead and give drivers a fair deal at the pumps, not just those that live near an Asda."

Shell also said it would be passing on the falling cost of oil to its customers.