Press Centre

Asda first to cut fuel prices

Asda sets new national price cap at 130.7ppl for unleaded and 134.7ppl for diesel

ASDA today (24th June) has given drivers a welcome boost by quickly passing on the drop in wholesale prices from the middle east, to middle England, Wales, Scotland and Northern Ireland.

From tomorrow morning (Saturday 25th June), Asda will cut prices by up to three pence per litre across the UK, meaning drivers filling up at Asda will not pay more than its new cap at 134.7 pence per litre for diesel and 130.7 pence per litre for unleaded at any of its 187 filling stations nationwide.

Andy Peake, Asda’s petrol director said: “Once again Asda leads the way in saving drivers money. And unlike others, our price cuts are across the board. That’s why no-one will pay a premium for their petrol, to fund lower prices in another town round the corner.”

Although wholesale fuel prices fluctuate day-to-day, and other retailers try and make their prices conditional on head-scratching promotions, Asda’s petrol strategy is simple – it aims to be the first retailer to drop prices and the last to put them up.

And unlike other retailers, which rely on high prices at filling stations with no local competition to fund price drops elsewhere, it sets a maximum national price cap for customers.

That clear policy is what lies behind the AA’s findings that towns with an Asda are likely to have the lowest petrol prices – and means Asda fuel stations has the smallest spread between lowest and highest prices, of any major petrol retailer.

Rival retailers often charge up to 6ppl more for fuel in parts of the country where Asda doesn’t have a petrol forecourt.

Posted in Press Centre on 24 June 2011