Press Centre

Asda cuts fuel prices across UK in further bid to reduce cost of living

  • Latest Move Part Of Concerted Effort To Lower Price Of Commodities
  • New Research Reveals Families Could Face Lowest Disposable Income For Two Years
  • Asda Already Delivered £100m Worth Of Savings To Customers So Far This Summer

On the day that Walmart releases its second quarter sales (for fiscal 2011), Asda announced it was cutting the price of both unleaded and diesel by up to 1ppl and 2ppl respectively.

The latest move means from today drivers filling up at Asda will not pay more than 111.9p for unleaded and 114.9p for diesel at any of its 180 filling stations.

The retailer has also committed to hold down these prices for at least two weeks, allowing drivers to fill up with peace of mind until after the August bank holiday weekend, the last big motoring get away of the summer.

Since mid-July Asda has led a concerted effort to hold down the price of a number of core commodity items, investing millions in a targeted programme of every day low price rollbacks. The latest fuel price cuts follow research from the AA that shows towns without an Asda are often forced to pay up to 6p more a litre for their fuel*.

According to Asda’s highly respected monthly income tracker, millions of families are still struggling to make ends meet. The latest figures for July show family spending power is down 4.2 per cent year on year, equating to a £7 fall in disposable income each week.

In addition, new research released later today by Asda will confirm the outlook to the end of the year remains challenging.

Cebr, which compile the report on Asda’s behalf, forecasts UK families could face the lowest amount of disposable income in the final quarter of 2010 for two years. While they predict a modest uptick in December, disposable income in the final month of the year is still predicted to be £172 – £5 lower than December 2009 and the same level as December 2008.

Andy Clarke, Asda president and CEO said: "These are increasingly uncertain times for millions of families across the UK, and it’s clear from all the data customers will need us more than ever.

“We’re shopkeepers not economists, but in this ‘age of austerity’ we know the pennywise will thrive. Our stimulus package for the economy starts with saving our customers money every time they shop –real money that can be saved, or spent elsewhere."

Using independent price checker, Asda has calculated that so far this summer (since 23rd June) it has saved customers more than £100m as a result of its continued price leadership. In the last month alone it has embarked on a series of aggressive price moves, lowering the cost of staple products including milk, eggs, bananas, bread, mince beef and sugar.

Asda is now charging just £1.25 for 4 pints (down from £1.53), or £2.09 for 6 pints (down from £2.25).
It has also chopped nearly a third off the price of a 6-pack of Smart Price eggs, reducing them from 91p to 63p, the price of a loaf of Smart Price 800g white and brown bread has been slashed from 47p to just 30p, and Asda has rolled back the price of beef mince (500g packs) to £1.64. Bananas are now priced just 67p per kilo, down from 97p last month, with a kilo bag of Silver Spoon sugar down from 98p to 68p.

Posted in Press Centre on 17 August 2010