Petrol price wars intensify

Updated 13.00 Wed Jul 30 2008

Keywords: price war, asda, petrol

Supermarket petrol price wars are raging on with Asda set to cut the cost of its fuel for a second time.

The chain is knocking 2p off a litre of unleaded to 111.9p and 4p of a litre of diesel which drops to 124.9p.

"With costs falling, now is a perfect time to show fair prices to all your customers by taking higher prices off the pump" - David Miles

Prices will apply nationally at all the store's 171 forecourts across the UK.

Asda's action follows a cut of 3p on diesel and unleaded announced last week - which swiftly provoked similar drops from Morrisons, Sainsbury's and Tesco.

It is now challenging rival retailers to stop pricing petrol locally and to adopt a national system.

Asda trading director David Miles said: "The latest price cut is a further example of our commitment to make motoring more affordable for Britain's drivers and hopefully this time our competitors will follow suit rather than charging locally high prices.

"With costs falling, now is a perfect time to show fair prices to all your customers by taking higher prices off the pump."