Asda has sparked a fuel price war after becoming the first of the major supermarket retailers to cut its prices in 2019.
After it announced on Monday morning that it was cutting petrol prices by 1p per litre and diesel by 2p per litre its three major rivals all revealed similar plans.
The cuts will come into effect on Tuesday morning at Asda, Morrisons and Tesco filling stations, with Sainsbury’s dropping its prices from Wednesday morning.
The move comes after a continued decrease in the wholesale price of fuel and has prompted calls for other supermarkets to follow suit.
The cuts mean that drivers filling up at Asda’s 320 petrol stations will pay no more than 113.7p per litre for unleaded and 123.7p per litre for diesel.
This is the seventh fuel price drop by Asda since late October and in each of the other cases Morissons, Tesco and Sainsbury’s were also quick to mirror the reduction.
Asda’s senior fuel buyer, Dave Tyrer said “As a result of wholesale prices recently falling we’ve been able to pass these savings onto our customers, giving them a good start to the new year.”
Paying over the odds
RAC fuel spokesperson Simon Williams said: “This cut is very welcome news, but the big question is whether the other supermarkets will respond and drop their prices sufficiently at all of their sites.
“Drivers badly need the supermarkets to start competing on price again as the so-called price war has been ‘cold’ since the middle of October. If this doesn’t happen then today’s Asda cut will not lower the average price of petrol and diesel across the country by as much as it should.
“This will mean drivers who are not near a low-cost fuel retailer will continue to pay over the odds. The price of petrol at the other supermarkets is currently about 3p more expensive than Asda compared to the normal gap of just over a penny so there is some catching up to do.”