Petrol prices are being cut by Asda for the second time in a week, bringing unleaded and diesel down to £113.9p and 116.9p per litre respectively.
In a move that may spark a round of price cuts with the major supermarkets, Asda is reducing its petrol and diesel prices On Thursday. Citing a desire to help families struggling with a drop in average disposable income, this month by Asda will make its forecourt prices some of the most competitive in the market.
The latest Asda Income Tracker shows an £8/ week fall in the disposable income available to average UK families compared to a year ago and points to an 11% rise in transport costs year on year in April 2010. As most motoring costs have risen during the last twelve months, the AA is reporting that petrol prices have increased by 26.8% annually in April.
Recent falls in the value of the pound against the dollar and a rise in the cost of oil have contributed to the price increases on the forecourt so motorists will find this price reduction very welcome, particularly as petrol is costing more than £6 per gallon at some petrol stations (watch our video below).
As Andy Clarke, Asda president and CEO said:
“This month’s tracker shows £8 a week drop in disposable income, reiterating that life is still tough for consumers and this is unlikely to change.
“To ease the pressure we have led again on cutting the price of petrol at the pump, and two consecutive weekly drops in price will be a welcome relief to customers.”
Crude oil prices have fallen from their recent high of over $85 per barrel to the current price of around $70 so this may well be a factor in the ability of Asda to reduce their petrol prices in two consecutive weeks. The falling crude prices may also give other supermarkets room to manoeuvre in reducing their fuel prices soon.