Fuel price war cuts costs

Total became the latest chain to cut its petrol prices today in what is developing into an all-out war among retailers.

The company slashed 3p off the cost of a litre of unleaded and diesel fuels across its network of 500 garages in England and Wales.

BP, Morrisons and Asda have all cut their forecourt prices, while Shell and Esso have promised to follow suit.

Total said the move was already being implemented, and was in line with its "policy of offering competitively priced fuel and passing on cost reductions to our customers wherever possible".

Supermarket chain Morrisons sparked the latest price war yesterday by cutting the price of fuel by 3p a litre across its 285 stations.

Rival supermarket Asda and fuel giant BP responded in turn with their own reductions.

Asda cut its fuel prices to 106.9p a litre for unleaded and 118.9p for diesel.

And BP said it was dropping its prices by "as much as 3p a litre" at most of its company-owned sites across the country.

Esso joined the war and said it will be reviewing its prices.

A spokesman for Esso said fuel sales were a "highly competitive business and we vigorously compete with competition".

Asda trading director Darren Blackhurst called on rivals to match its move in the price war.

He said: "We are calling on other retailers to follow our lead and give drivers a fair deal at the pumps, not just those that live near an Asda."

Last night Shell also said it would be passing on the falling cost of oil to its customers.

A spokesman said: "On Shell company-owned forecourts we will certainly be passing on price cuts to our customers. We always aim to remain competitive."

AA president Edmund King welcomed the price cuts.

"This is good news for the consumer but also good news for the economy as high petrol and diesel prices have fuelled inflation to 4.7 per cent," he said.