PETROL prices fell on forecourts across South Lakeland and the rest of the country this week as the gloves came off in a price war between Britain's big retailers.

Asda fired the opening salvo in what has become a pitched battle between the country's biggest petrol retailers.

The company has cut its forecourt prices by an average of around 2p on a litre of normal unleaded, diesel and four-star equivalent fuels leaving unleaded on sale at its Kendal store for 73.7pence.

Asda spokesman Ed Watson told the Gazette that improved stability in the Middle East had brought down the price of crude oil making petrol cheaper. He said he could not comment on what Asda's competitors chose to do, but said: "If there's a price saving we can pass onto our customers, we do."

Rival supermarket Morrisons last week claimed to be selling the cheapest petrol in the UK at 72.9 pence for a litre of unleaded after it wiped 2p per litre (10p per gallon) off its petrol and diesel prices.

Clive Kirkham, from British Petroleum, said the company had also cut its prices to remain competitive with the supermarkets

"Some would say that the supermarkets have set the pace with their aggressive price cutting," he said, "We are up against the likes of Asda and Sainsbury so we aim to match them."

Mr Kirkham explained that prices for crude oil and refined products such as petrol had fallen since peaking in late March. As well as uncertainty about war in the oil-rich Middle East, political problems in Venezuela and Nigeria had contributed to high crude prices as had the US military purchase of diesel in European markets and an unseasonably cold spell of weather in eastern parts of the US.

With some of that uncertainty now over, he said, the market looked more stable.

In the longer term, he said that improved stability could mean there could be scope for further cuts, but he did not expect to see prices "plunge".

May 9, 2003 10:30