Asda cuts price of petrol by 2p-a-litre and slashes diesel by 3p ahead of lockdown in England

Asda has cut the price of petrol by 2p-a-litre and diesel by 3p in the run-up to England going into a second national lockdown.

The supermarket giant is reducing its pump prices at 322 filling stations across the country from today in response to falling wholesale costs.

It means those who will be working from home from Thursday and adhering to government rules have two days to fill the tanks of their cars before the lockdown ensues.

Fuel price experts have told us a repeat crash in fuel prices, which saw petrol drop below £1-a-litre for the first time in four years during the first coronavirus lockdown, is unlikely,

From today, drivers filling up at the supermarket chain will pay no more than 108.7p for unleaded and 111.7p per litre for diesel.

Dave Tyrer, Asda senior fuel buyer, said: ‘We want to continue to support the nation during this second lockdown by passing on reductions in wholesale cost of fuel to our customers.

‘We hope this will provide some additional support to those essential workers, such as NHS staff and key workers who are still required to make essential travel journeys to and from work.’

Fuel experts say there has been no incentive for retailers to cut prices in the last three months, with wholesale costs barely shifting since July. 

However, last week saw oil prices fall by almost $4 a barrel, which – if savings were to be passed on by retailers to consumers – would usually see pump prices fall by around 2p-a-litre. 

Luke Bosdet, AA’s fuel price spokesman, said: ‘Only last week did the cost to the trade fall significantly and the speed with which Asda has slashed its prices is what makes it stand out as the leading supermarket for cheap fuel.’

He added that motorists are unlikely to see fuel prices crash at the same rate they did when the Government imposed the first lockdown in Britain from the end of March.

This was caused by a price war between Saudi Arabia and Russia when the latter refused to reduce oil production, which saw oil prices fall by 65 per cent.

Oversupply came at a time when demand hit an all-time low, with road traffic levels dropping by as much as 80 per cent in the UK as people were ordered to stay home to prevent the spread of Covid-19.

In the UK, petrol fell below £1-a-litre for the first time since 2016, and many rural retailers faced closure due to the huge fall in sales. 

However, with different measures imposed on people in England from Thursday, the AA’s fuel price expert said it is unlikely motorists will see a repeat of this in the next month.

‘Although traffic will fall with a second lockdown, there are significant numbers of people who will need to use their cars: school runs, students to their colleges and universities, workers who can’t work from home or their workplaces are now covid secure and, of course, NHS and other emergency service workers,’ Bosdet said.

‘In the last lockdown, many fuel stations held back savings from lower wholesale prices because they said they needed to compensate for lower fuel demand. 

‘Asda’s price cut throws down a challenge to other fuel retailers to do the right thing and, this time, charge a fair price for petrol and diesel.’

Motorists across Britain continue to be advised to wear gloves while filling up.