Asda has triggered a price war on forecourts with its announcement of a 3ppl drop in petrol prices, bringing it down to 76.9p – the lowest since April last year.
Other supermarkets have responded, with Tesco and Sainsbury saying that their local pricing policies would ensure they could not be beaten on price in any location, and pledged to cut their prices as well.
However, Sainsbury also announced that it was dropping its 5ppl off when customers spend £50 instore as of January 26, and introducing a new
promotion for 1ppl off with every £30 to £49.99 spent instore, and 3ppl off with every £50.
Asda said its petrol price reduction was in response to an over-supply of gasoline, which has driven prices down. The latest cuts follow a pre-Christmas reduction below 80ppl.
Paul Mancey, trading director at Asda, said: “Our aim is always to be the first to drop prices when our costs fall. There can be no excuse for profiteering from high fuel prices. Other fuel retailers should follow our lead without delay.”