Asda fuel price cut by 2p per litre after supermarkets accused of overcharging for petrol

Asda announced that it would reduce the cost of diesel by 3p per litre and petrol by 2p per litre

Thursday, 17th October 2019, 4:35 pm
Updated Thursday, 17th October 2019, 4:36 pm
(Photo: Shutterstock)

Supermarkets accused of overcharging for petrol are slicing their prices today, in response to claims that they are failing to pass on reduced wholesale costs to consumers.

Asda kicked off the price slashing early on Thursday, announcing that it would reduce the cost of diesel by 3p per litre and petrol by 2p per litre.

That means drivers using an Asda filling station will pay no more than 121.7p per litre for petrol and 125.7p per litre for diesel.

“With wholesale costs falling and half-term just around the corner," said Asda's senior fuel buyer Dave Tyrer, "we’re pleased to be able lower the cost of fuel and pass these savings on to our customers.”

As is often the case when one supermarket cuts its fuels prices, others are following suit, with both Sainsbury's and Morrisons reducing costs.

"As we gear up for the upcoming busy festive period, we are committed to helping our customers live well for less," said David Pegg, fuel buying manager for Sainsbury’s, "whether they’re stocking up on groceries or refuelling their cars.”

Oil has been trading at around 60 US dollars a barrel since the beginning of the month, falling at one point to 58 US dollars and causing the wholesale cost of petrol to fall steadily since 7 October.

That's according to the RAC, who said : “Drivers are losing out badly, paying around 7p a litre more for petrol than they should be."

“This means a driver filling up a 55-litre family car is paying £3.85 too much.

“In the last year... our biggest retailers haven’t been as transparent with their pricing as they have been in the past, which means motorists all over the country lose out as a result of them taking more margin than they have previously.”

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Petrol pump labels have changed - here's all you need to know

MPs call for petrol price watchdog

Earlier this year, a group of MPs called for an independent fuel price watchdog - Pumpwatch - to monitor the cost of petrol and diesel following accusations that the industry was increasing its profit margins at the expense of motorists.

i previously spoke to experts to help you cut your petrol or diesel car fuel costs. Here are our money saving tips.

From September, filling stations around the country have had to display new labels on their petrol and diesel pumps.

The new signs replace the simple “unleaded” or “diesel” wording as well as those indicating the octane rating of the fuel.