In spite of the 2p per litre fuel duty added by the Chancellor yesterday, Asda has knocked as much as 3p per litre off the price of fuel, which is certain to spark a new fuel pricing war amongst the supermarkets.
Asda dropped its unleaded petrol price from 90.9p to 88.9p, with diesel buyers benefitting from a 3p reduction, from 105.9p to 102.9p.
Although the new lower VAT rate of 15% has the effect of dropping fuel prices for the average motorist, the 2p per litre duty more than negates the effect, so Asda's move represents a real saving.
With the OPEC countries this weekend agreeing to delay plans to reduce oil production, Asda foresees further drops in the price of car fuel, which it intends to pass onto the motorist.
From today, all 172 Asda forecourts will feature the reduced prices and it's expected that Morrisons and Tesco will soon follow suit.
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