Asda has cut the price of petrol and diesel by 2p per litre (ppl) amid an oil war between Saudi Arabia and Russia which led to stock markets and oil prices tumbling across the globe.
Prices at Asda filling stations will fall to a maximum of 114.7ppl for petrol and 116.7ppl for diesel, its lowest prices since November 2017, according to the retailer.
The supermarket giant has dropped fuel prices by up to 11ppl since January this year.
Asda senior fuel buyer Dave Tyrer said: “Once again we’re pleased to be passing on wholesale cost reductions to customers.
“It will be a welcomed boost, especially to diesel drivers who are seeing some of the lowest fuel prices since 2017.”
AA fuel price spokesman Luke Bosdet said: “For the past two years, UK drivers have had to endure petrol averaging 125p a litre — 15p a litre higher than during the lows of 2015 and 2016.
“Now, at last, some real financial relief will flow from the pumps.
“However, there is currently a 6p, soon to be an 8p, gap between the UK average price of petrol and what competitive supermarkets like Asda charge for it.
“That’s a more than £4-a-tank difference between forecourts that have their customers’ interests at heart and those that don’t.”
With investors already dealing with a decline in demand due to coronavirus, crude oil prices fell by as much as 30% on Monday after Saudi Arabia slashed its export oil prices and moved towards a price war with Russia after the two sides failed to agree to supply targets — wiping billions off oil companies’ share prices.
The move sent the price of a barrel of Brent Crude down 30% initially on Monday, before settling at around 20% down on a day earlier, to just 36.1 dollars a barrel.
“The spat between oil producers echoes the oil price crash in 2015, when £1-a-litre fuel returned to UK petrol stations,” said Bosdet.
“There is still a long way to go and the chances of another major collapse in forecourt prices will depend on how long the oil price plunge continues and how quickly UK retailers take to pass on savings.”