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Asda knocks 2p a litre off petrol

Asda has sparked a likely supermarket fuel-price war by announcing a cut in the cost of its petrol and diesel.

From Tuesday, the price of Asda petrol will go down by 2p a litre so that no one will pay more than 131.7p a litre.

Asda diesel will be cut by 1p to 137.7p a litre.

The reductions follow a 2p cut in petrol and a 1p cut in diesel announced by Asda last week.

Andy Peake, Asda's petrol trading director, said: "Our national price cap on fuel benefits everyone across the country, meaning that no one filling up at Asda is forced to pay a premium for their fuel because of where they live."

AA president Edmund King said: "We welcome these latest fuel price reductions and hope other retailers follow this lead.

"Our fuel price report shows that the wholesale price of petrol is down to its lowest this year. In towns with uncompetitive supermarkets petrol is costing up to 5p a litre, or £2.50 a tank, more to fill up. Hence there is still a blatantly unfair pump price postcode lottery when it comes to filling up."

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