Asda kicks off new petrol price war by slashing the cost of a litre by 2p to 114.7p amid oil standoff between Saudi Arabia and Russia that sent the FTSE 100 tumbling to its worst day since the 2008 crash
- Prices have tanked across the world due to oil war between Saudi and Russia
- Asda is now experiencing its lowest fuel prices since November 2017
- Now costs motorists 114.7 pence per litre for petrol and 116.7ppl for diesel
- Represents a fuel price drop of up to 11ppl since January at the supermarket
Asda has kicked off a new petrol price war by slashing the cost of a litre by 2p to 114.7p amid an oil standoff between Saudi Arabia and Russia.
The oil war between the Saudis and Russians sent the FTSE 100 tumbling to its worst day since the 2008 crash.
It came after both sides failed to agree supply targets, with markets already struggling due to uncertainty sparked by the coronavirus crisis.
Motorists filling up at an Asda forecourt will now pay no more than 114.7ppl for petrol and 116.7ppl for diesel.
Asda has sparked a petrol price war by cutting its prices by 2p amid an oil standoff between Saudi Arabia and Russia (file image)
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.’
Asda said these are its lowest fuel prices since November 2017. The retailer has brought fuel prices down by up to 11ppl since January.
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.
Motorists filling up at Asda forecourts will now enjoy lower fuel prices thanks to the oil war between Saudi Arabia and Russia (file image)
‘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.’
As investors already deal with the fallout from coronavirus, Saudi Arabia announced plans to flood markets with extra supply – wiping billions off companies.
The Saudis are trying to punish Russia after the two sides failed to agree to supply targets.
Leaders will also be hoping it pushes US shale gas companies under, as their operations become economically unviable.
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.