Price war at filling stations
Asda cuts price of motoring to 99.7p per litre
Asda has sparked a price war at the petrol pumps by reducing the price of unleaded to below £1 a litre this weekend.
The supermarket chain has cut the price of unleaded to 99.7p and diesel to 103.7p at all of its 277 filling stations – the lowest price since summer 2009.
Asda says it is part of £26m in savings it is introduing throughout the festive period as an alternative to Black Friday.
It also follows the Chancellor’s decision to hold off any price increase on fuel duty. The price cut will mean 4p off a litre.
Asda president and chief executive Andy Clarke had urged the Chancellor to continue with the freeze instead of the anticipated yearly fuel duty rises in line with inflation from April 2016.
It will revert back on Monday to 103.7p on unleaded and 106.7p on diesel.
Mr Clarke said: “The Chancellor’s freeze on fuel duty is what our customers were hoping for but it doesn’t look like it will be long lived.
“We’re adding a further boost by investing in a three day fuel price drop meaning drivers can now benefit from fuel as low as 99.7ppl in the crucial run-up to the festive period. We’d urge the chancellor to continue with a freeze on fuel duty to help maintain discretionary income levels for families rather than going ahead with an anticipated inflationary rise from April next year. Our commitment is to keep prices as low as possible for drivers and we’d ask the Chancellor to do the same”
The latest Asda Income Tracker shows that vehicle fuel inflation has dropped -14.1% compared with this time last year in fact at Asda the price has dropped 20p across the same period, saving a family £14 on a full tank of fuel (*based on a 70 litre tank).
Asda is the only retailer to operate a national price cap and offer drivers the lowest fuel prices nationwide week in, week out. Its average price is up to 6ppl cheaper at the pump than some big petrol retailers.