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Supermarket fuel price war renewed

10/07/2009

Asda announced yesterday that it had dropped its petrol and diesel prices to 99.9p a litre, prompting similar cuts by Sainsbury's, Morrisons and Tesco.

While Asda cut petrol and diesel prices to 99.9p per litre across all its 176 forecourts, its supermarket competitors have said that their petrol prices will vary in line with local competition, starting from as low as 99.9p.

Asda commercial director David Miles said that "there is no justification for any major retailer selling fuel above £1 per litre".

According to Petrolprices.com, the average cost of unleaded petrol on 9 July was 103.8p per litre, with diesel at 105.1p a litre.

Phil Maud, petrol director at Morrisons, said that the price cuts were designed to help the increasing number of Brits holidaying in the UK.

"That few extra pence per litre can be the difference between a little treat that makes the summer holiday a bit more special."

However, Louise Doherty of Petrolprices.com told The Guardian that "motorists shouldn't get their hopes up for further price cuts unless the cost of oil falls further".

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