Asda has cut petrol and diesel prices across its forecourt network, sparking hopes of fuel cuts at the other major supermarkets.

Asda has slashed an average of 4.5p off a litre of unleaded and around 5.5p off diesel

It’s slashed an average of 4.5p off the cost of litre of unleaded across its 320 sites in the last two days and around 5.5p off diesel, but “without advertising the fact”, according to RAC analysis.

The RAC welcomed the move, which follows weeks of campaigning for the UK’s ‘big four’ supermarkets to pass on an “enormous” drop in the wholesale prices of both fuels.

But fuel spokesperson Simon Williams said the fact that Asda’s price cuts had been made so quietly was “surely admission that they should have come much sooner”.

“Asda is now charging an average of 153.5p for petrol and 176.7p for diesel which is around 2p less than its rivals. We urge the other three supermarkets to catch up quickly – or go even further – and give drivers some much-needed relief from high prices next time they fill up. If they do, this will bring the UK average petrol price down from its current 157.8p which benefit drivers everywhere,” he elaborated.

“Despite these reductions our analysis of wholesale data shows this should really be just the beginning as there’s easily scope for another 10p a litre to come off the current average price of both petrol and diesel. Perhaps it will be Asda which once again takes a leadership position by further cutting its prices to help drivers save money in the run-up to Christmas.”

On Wednesday this week, the RAC had said there was “no justification for major retailers not to cut pump prices significantly” on the back of a fall in the price of oil. It added that a lack of price cuts would provide further evidence of ‘rocket and feather’ pricing for the Competition and Markets Authority to take note of.

The UK’s competition watchdog said earlier this week that it had emerging evidence from fuel retailers of such tactics – where prices shoot up rapidly following wholesale price increases but come down slowly when prices fall. While the CMA said there were no signs of such behaviour by retailers in the years before 2022, it’s found evidence of a change this year – in particular for diesel.

Last month saw the RAC warn that supermarkets were charging “excessive” margins and were taking advantage of customers. It also reminded drivers there are smaller, independent forecourts offering more competitive prices than supermarkets – so it remains best to shop around.