Price cut at supermarket pumps

Motorists in Shropshire were cashing in at the pumps today after supermarket chain Asda cut its fuel prices to 99.9p per litre.

The company said there was "little justification" to charge more than £1 at the pumps. The price cut was made on petrol and diesel at the company's 176 forecourts, with both fuels down to 99.9p.

Asda stores in Shrewsbury, Telford and Donnington Wood moved instantly to lower their prices. The company's forecourt at Shrewsbury was busy from 7am this morning with motorists forming a small queue to purchase the lower-priced fuel.

A spokeswoman for the store confirmed that the lower prices had been introduced with immediate effect.

Today the store's commercial director David Miles said: "There is no justification for any major retailer selling fuel above £1 per litre - that is why we are delighted to be able to reduce both petrol and diesel to 99.9p per litre for all our customers in line with falling costs.

"Asda is offering value to all drivers nationwide and we can guarantee all our customers that they'll get a fair price for their fuel no matter what they fill up with at the pump."

The company said that while diesel prices have previously been higher than petrol, current costs mean that this should no longer be the case.

According to website petrolprices.com, yesterday the average charge per litre for unleaded was 103.8p, ranging between 99.9p and 115.9p, while the average for diesel was 105.3p, ranging between 99.9p and 117.0p.

The price of crude oil has been on the rise in recent months, but it is still less than half the 140 dollars a barrel level it reached at its height last year.

The cost of fuel in Shropshire has fluctuated wildly during the past year with prices ranging from less than £1 to about £1.25 last summer.

The fluctuations have caused problems for some businesses, which also been hit by falling orders during the recession.