Asda sparks price war at petrol pumps

Supermarket Asda sparked a possible fuel price war yesterday by announcing a 2p- a-litre reduction in the cost of its petrol.

To take effect from today, the cut will take Asda petrol prices down to 115.9p a litre, while its diesel will drop 1p to 118.9p a litre.

Asda commercial director David Miles said: "Motorists will be relieved commodity prices are coming down and as always we are the first to

reflect falling costs in our prices at the pump."

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The news came as the AA said that average UK petrol prices, which reached an all-time record of 121.61p a litre last week. Prices dipped to 121.54p a litre on Monday, with diesel 122.94p a litre.

But the AA said UK fuel prices should have gone down by more, as the wholesale price of petrol in north-west European had fallen.

AA president Edmund King added: "Many drivers would prefer to see pump prices come down instead of having to go to the next town for cheaper prices."

Yorkshire and Humberside remains the cheapest area for petrol (120.7p a litre) and diesel (122.2p a litre) in the UK.

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