Asda leads new round of supermarket fuel cuts

Asda, Tesco and Morrisons have cut the price of fuel at their petrol stations.

Asda was first to announce a cut, and it has taken 2p off a litre of petrol and diesel. Unleaded will now cost no more than 120.7 pence per litre, while diesel will cost no more than 124.7 pence per litre.

Tesco and Morrisons have now also announced a cut of up to 2p per litre on both fuels.

[Earn money back on your fuel spending with a cashback credit card – compare them now]

Three cuts in four weeks

This is the third time Asda has cut its prices in the last four weeks. On the 14th October it announced a cut of 2p on diesel and 1p on litre, which followed cuts of the same size at the end of September.

The RAC said this cut was not unexpected as there is plenty of margin between wholesale and retail fuel costs at the moment, and argued that the oversupply of oil is likely to continue for some time, helping to push prices down still further.

[Compare car insurance policies and see if you could save]