• New prices will come into effect tomorrow
  • Move comes after a warning from Government that it was looking at ways to ensure petrol retailers do not delay price cuts when wholesale costs fall
  • Lowest price in over a year as prices have fallen 11p since their peak in April
  • But cost of petrol will start to rise again in the summer because of Government plans for fuel duty increase in August

By Jill Reilly

PUBLISHED: 05:26 EST, 12 June 2012 | UPDATED: 08:12 EST, 12 June 2012

A fresh supermarket price war on the forecourts is underway with giants Asda and Sainsbury's cutting up to 3p a litre from the price of fuel.

The retailers said the new charges would come into effect tomorrow.

The slash follows April’s record high petrol prices, which pushed the price of filling a family car to 100.

Slashed: Supermarket giants Asda and Sainsbury's are cutting up to 3p a litre from the price of fuel. The retailers said the new prices would come into effect tomorrow

The cuts mean that filling a typical car will be the cheapest since February 2011, according to  experts. 

Asda said an ease in global oil prices has enabled it to pass those savings on to motorists.

Transport Secretary Justine Greening said the Government would be prepared to introduce new laws to control prices

Transport Secretary Justine Greening said the Government would be prepared to introduce new laws to control prices

Drivers filling up at any of Asda's 195 forecourts nationwide will now pay no more than 129.7p per litre for unleaded and 134.7p per litre for diesel.

Andy Peake, Asda's director of petrol trading, said: 'Motorists will be pleased to know fuel is now at the lowest price in over a year as prices have fallen 11p since their peak in April.

'Unlike other retailers, our price cuts benefit everyone across the country, meaning that no-one filling up at Asda will be forced to pay a premium for their fuel.'

A Sainsbury's spokesman said: 'From tomorrow we will be cutting petrol and diesel prices in our petrol stations by up to 3p per litre. Sainsbury's is committed to delivering great value and helping customers cut down on cost wherever possible.'

A spokesman for the AA welcomed the cuts, saying that motorists would be getting a 'good price' for fuel.

But the cost of petrol looks set to rise again in the summer - in August the Government has planned 3.02 pence per litre rise in fuel duty.



The move to pass on lower prices to drivers comes after a warning from Government that it was looking at ways to ensure petrol retailers do not delay price cuts when wholesale costs fall.

Two weeks ago, Transport Secretary Justine Greening said companies should develop a code of practice to stop the 'indefensible' practice of petrol companies raising prices at the pump as soon as wholesale petrol and oil prices rise, only to delay lowering them again when costs fall.

She said the Government would be prepared to introduce new laws to bring about the change if companies failed to come up with a code of their own.

Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

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Great Britain is the only country in Europe that feels it necessary to charge more for diesel that that of petrol. Why? It has nothing to do with refining costs either, because as we all know, petrol is five times more costly to refine that diesel, so why has`nt someone given an explanation for this blatantly fraudulent practice.? Nothing to do with the British always acting like sheep with no questions asked I suppose!! Tom.

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Asda is already 130.7p a litre, so a cut of 3p a litre would be 127.7p, but they have announced 129.9p, so just a 1p cut.......

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Asda is already at 130.7p a litre, so a 3p cut would mean 127.7p a litre, but they have announced 129.7 a litre, thats a 1p cut not 3p cut.........

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Down 3p this week up 4p next week, This is the Govenments promise to look into the price of fuel, sorry Joe Public Cameron and his cronies are conning you again

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Most other countrys link the price of fuel to the cost of a barrel of crude, which is the honest way to treat the population. Our fuel companys prefer high profits and the government does nothing, because of the percentage tax involved in the high price. USA is a good example of the correct price of fuel.

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I saw a classic British comedy form the late 80's the other day, and it showed a petrol station. The petrol was 47p a litre!!!! I don't think we will be seeing that price again anytime soon.

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And of course Asda has put the "temporarily" fuel price decrease as an increase on their in-store Pizza's and other food - so not impressed.

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Transport Secretary Justine Greening said the Government would be prepared to introduce new laws to control prices.......... just another waste of pixels

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someone needs to give us motorists a drop of around 30p a litre to make any REAL difference to our back pocket! 1 a litre is MORE than enough for fuel!

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Does Justine Greening see the irony in her comment? Her boss 'call me dave' promised a fair fuel stabiliser' to regulate prices before the last election, but that was before his best mate started putting them up with his extra duty. I aren't entirely sure how her law would work though, presumably someone would look at the wholesale price, and the pump price, decide the difference was too big (what exactly would be defined as too big?), then decide whether it was the refiner, the distrubutor, or the petrol station was making the excess profit, then fine them in some way. Can anyone see this being very workable? One last point, the coalition promised that they would get rid of a law every time they introduced one, how about when ministers make stupid statements like this someone asks which law they will repeal at the same time? If they can find one to repeal there is a case for that law going regardless

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