Asda has announced that it is to cut petrol prices by up to 2p a litre from Thursday 25th October. This means its customers will pay no more than 133.7p a litre.
The cost of diesel will stay at 139.7p a litre as there has been no drop in wholesale costs. Asda has 203 forecourts across the UK.
Asda is once again the first supermarket to cut prices passing on the savings customers as soon as the wholesale price fell.
Two other major supermarkets, Sainsbury's and Tesco announced similar price cuts of up to 2p a litre.
Richard Crampton, Sainsbury's head of fuel, added: "We're always looking for ways to help our customers save money, particularly as we head towards the festive season, so we're delighted that from tomorrow we will be reducing our petrol price by up to 2p per litre."
However, both Tesco and Sainsbury's stopped short of giving customers a promise of the top price they will pay and is likely to cut them in line with local competition, usually to just below the best price from local rivals.
A Tesco spokesperson said: "We are dropping the price of unleaded fuel by up to 2p per litre from tomorrow morning.
"As Britain's biggest petrol retailer with 490 forecourts, more motorists will make savings at the pumps at Tesco than at any other fuel retailer."
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However, Tesco stopped short of giving customers a promise of the top price they will pay and is likely to cut them in line with local competition, usually to just below the best price from local rivals.
Asda’s policy of setting a maximum national price cap is the reason that the AA has said that customers who live in an area with an Asda store are likely to have the UK’s cheapest petrol prices.
Asda's petrol trading head Jeremy Walton said: "We always aim to be the first retailer in each part of the country to drop prices when costs are falling and the last to put them up."
“When we do drop prices, we drop them everywhere, setting a maximum national price cap for our customers, which means they all benefit from our low prices, regardless of where they live.”
The AA said that customers are not receiving the full benefit of the drop in the wholesale cost of fuel.
AA public affairs head Paul Watters said: "Last week, our fuel-price report pointed to a 4p drop in petrol wholesale prices working its way through the system.
"UK average petrol pump prices reached a late summer high of around 140p a litre in mid September and sat there for more than a fortnight. More than a month on, the average petrol price yesterday was down to only 138.70p a litre.
"Unless the rest of the market reflects the lower cost, it's a case of the same old story - prices up like a rocket, falling like a feather."
Last month, the Office of Fair Trading said it will launch an inquiry into the cost of petrol and diesel for UK motorists to test whether the market was working for consumers. It will investigate whether competition is being curtailed in the UK market and cuts in the wholesale cost of crude oil are being passed onto UK motorists.
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