Fuel prices at Asda have been cut after findings were published from a review by a competition watchdog.
Fuel prices have been cut at Asda fuel stations for both petrol and diesel with as many as 320 sites seeing the per-litre price reductions.
The move comes after the Competition and Markets Authority published findings from its study which it said found evidence of 'rocket and feather' pricing, where retail prices are raised quickly to match wholesale cost increases but only lowered slowly when those wholesale costs decrease.
On average, unleaded petrol has had its per-litre price cut at Asda forecourts by 4.5p, while diesel has been cut by 5.5p per litre. That means that Asda is charging an average of 153.5p per litre for petrol - comparing to a national overall average of 157.8p per litre -and 176.5p per litre for diesel - the overall national average for which is currently 181.33p per litre, according to the RAC’s latest fuel watch data.
The RAC hopes that this reduction by Asda will lead to reductions also at other UK supermarkets, which would lead to a reduction from the current national overall averages.
RAC fuel spokesman Simon Williams said:
“Our data shows that, without advertising the fact, Asda has taken an average of 4.5p off the cost of litre of unleaded across its 320 sites in the last two days, and around 5.5p off diesel. While we’re pleased one major supermarket retailer has finally started heeding our calls to pass on the enormous drop in the wholesale prices of both fuels, the fact these price cuts have been made so quietly is surely admission that they should have come much sooner.
“Asda is now charging an average of 153.5p for petrol and 176.7p for diesel which is around 2p less than its rivals. We urge the other three supermarkets to catch up quickly – or go even further – and give drivers some much-needed relief from high prices next time they fill up. If they do, this will bring the UK average petrol price down from its current 157.8p which benefit drivers everywhere.
“Despite these reductions our analysis of wholesale data shows this should really be just the beginning as there’s easily scope for another 10p a litre to come off the current average price of both petrol and diesel. Perhaps it will be Asda which once again takes a leadership position by further cutting its prices to help drivers save money in the run-up to Christmas.”
