Asda dropped retail fuel prices by 2p per litre on Friday.
Asda’s Unleaded petrol was capped at 119.7p per litre on Friday and diesel was capped at 123.7p per litre.
Tesco, Sainsbury’s and Morrisons responded by cutting their unleaded petrol and diesel rates by about 2p per litre. And Morrisons will offer a further discount of 10p per litre for transactions over £60.
These reductions followed declining wholesale fuel prices since early November. Prior to Friday’s drop, market sources accused these retailers not passing their savings from wholesale fuel trades onto retail buyers.
Asda has introduced two previous fuel price cuts in recent months, both of which were followed by price drops from other retailers.
In mid-October this year, Asda, Sainsbury’s and Morrisons dropped petrol prices by 2p per litre and diesel prices by 3p per litre.
And Asda dropped their petrol prices to £1.23p per litre in September, a drop of 3p. This move was also mirrored by Tesco, Sainsbury’s and Morrisons.
The British supermarket chain, a subsidiary of American retailer Walmart, has 322 petrol stations in the UK and retails to 7.4% of the British fuel market share.