Asda once again make first move in potential petrol price war by reducing unleaded by 2p a litre tomorrow

By Lee Boyce for Thisismoney.co.uk

Updated: 09:56 EDT, 18 August 2014

Happy motoring: Unleaded prices will fall at Asda tomorrow

Asda will reduce the price of its petrol by up to 2p a litre tomorrow, with diesel dropping by 1p, the supermarket has announced.

It means drivers filling up at Asda will pay no more than 124.7p a litre for unleaded and 128.7p for diesel.

This is the lowest price since January 2011.

At the end of last month, Asda capped unleaded at 126.7p a litre and a number of other supermarkets then followed suit with similar price cuts. 

When Asda announced that round of cuts, it also said it had made prices the cheapest since the start of 2011.

But motoring organisation the AA says millions of drivers are victims of a ‘postcode lottery’, with big discrepancies between those areas where there are no Asda supermarkets and those with competition between the supermarkets.

Andy Peake, Asda petrol director, said: ‘It now costs £6 less than last summer to fill up a family car with fuel, meaning we're putting much-needed cash back in drivers' pockets for those bank holiday ice-creams.’

The move comes after the cost of a barrel of crude oil has reached its lowest level this year, with prices dipping under the $102 mark. 

Prices have fallen following the publication of an influential report from a leading oil think tank which showed a glut of crude oil from Saudi Arabia is flowing onto the market and rising stockpiles.

Paris-based International Energy Agency said the world will consume less crude than experts had predicted this year, while supplies in Saudi Arabia are running at the highest levels since September 2013 and crude from Libya is back on the market.