Asda cuts petrol prices as wholesale costs drop

Asda cuts petrol prices as wholesale costs drop

Supermarket chain Asda has cut prices at its filling stations in the wake of falling wholesale costs.

The retailer has cut 2p per litre from petrol, meaning drivers will pay no more than 127p for a litre at its pumps.

A spokeswoman said that diesel prices had not been reduced at the same time as wholesale costs for that had not changed.

The move has been welcomed but industry observers have warned it could be a short-lived respite for drivers.

Four-year high

The cut comes after nearly three months of price rises on Britain’s forecourts.

The average price per litre reached 131p for petrol and 135p for diesel this month – the highest in four years.

New government data shows that this week is the first time in three months there was no increase in the price of petrol, while the rise in diesel slowed to just 0.2p per litre.

Asda’s senior fuel buyer Dave Tyrer said: “Today’s latest move shows that Asda is once again cutting the cost of filling up for motorists following a decrease in the wholesale costs on unleaded.

“Our new national price cap of 126.7p per litre will be welcomed by the millions of drivers across the UK who have seen prices rise by 10p per litre since the start of summer and are currently at their highest for five years.”

Black cloud looming

RAC fuel spokesman Simon Williams said: “Drivers will be relieved to see a major supermarket cut the price of petrol after weeks of rising prices. “The wholesale price of petrol has been falling since the start of September so it’s right that retailers pass on the saving to motorists at the pumps, even if it is a little late.

“However, while this is clearly good news there is a black cloud looming over UK forecourts as yesterday a barrel of oil hit 82 US dollars – a price not seen since November 2014.

“On top of this it is being predicted oil could rise towards 90 US dollars which without a strengthening of the pound could spell much higher prices at the pumps.”

AA fuel price spokesman Luke Bosdet said: “Once again, Asda has to take the lead in passing on fuel savings to drivers.

“Last weekend, despite three weeks of falling wholesale costs, the pump price of petrol hardly budged below the four-year highs that families and businesses have had to endure.”


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