Asda starts fuel price war

  • Litre of petrol 128.7p, while diesel costs 136.7p
  • Sainsbury's and Tesco follow suit with more to follow
  • Tesco claims its customer can save up to 15p a litre

Supermarket giant Asda has led the way for a new fuel price war by cutting the cost for a litre of petrol by 2p.

Now, at Asda’s 192 UK filling stations, it'll cost you 128.7p for a litre of petrol while diesel will be 136.7p – the lowest level since February 2011.

Asda operates an income tracker index, which it claims shows that transport costs are the biggest factor putting pressure on household finances making families £15 a week worse off than this time last year. An Asda spokesman said: “This price reduction will be a helpful boost to families.”

Other supermarkets have followed suit: on Friday evening Tesco reduced the cost of fuel by up to 2p a litre and along with other promotions it claims its customers can save a further 15p a litre.

Sainsbury’s also joined in the war on Saturday by cutting the cost of fuel in many of its outlets by 2p a litre.

Luke Bosdet of the AA said the moves reflect a 4p drop in the wholesale price of petrol: "Throughout the whole of the summer petrol prices have followed the fortunes of the euro: when the euro improved, petrol prices increased. Now things are coming to a head with the euro and we have the end of the Libyan crisis and the pound strengthening. That is worth about 3p-4p at the pump."

Asda wants to garner its reputation as the cheapest outlet for fuel but on a few occasions in the summer it was outdone by Morrisons.

Prices for November 2, supplied by analysts Experian Catalyst and Asda, show that some retailers are asking up to 8p more than Asda.