Asda triggers supermarket ‘price war’

Asda is slashing grocery and fuel prices in a bid to win back customers.

Its new chairman, Allan Leighton, is determined to make the supermarket chain ‘incredibly competitive again’ by cutting prices.

Leighton says he’s willing to sacrifice short-term profits to boost Asda’s market share.

Price cuts across the board

In January, Asda relaunched its ‘Rollback’ pricing scheme, reducing the cost of over 4,000 products by an average of 25%.

The price cuts will continue throughout the year, as Asda aims to bring its entire range under a new low ‘Asda Price.’

Fuel price drop

The supermarket chain has also recently dropped fuel prices by as much as 4p per litre, sending shockwaves through the market. This is the largest fuel price cut from a retailer this year and Asda’s biggest since 2022.

With oil prices falling, the RAC expects fuel prices to drop further in coming weeks, with petrol prices set to fall by 6p per litre and diesel pegged for a 4p per litre price fall.

What does the ‘price war’ mean for you?

Asda’s price cuts are likely to force Tesco, Sainsbury’s and other supermarkets to follow suit, making it cheaper for millions of shoppers.

While the forthcoming national living wage hike and higher national insurance costs, which were announced by chancellor Rachel Reeves in her autumn budget, may push up some prices, experts believe the price war will bring much-needed relief to customers.

As Simon Williams, RAC head of policy, said on the fuel cuts: “It's great to see Asda leading the way once again with a serious price cut on its forecourts, following our call for retailers to pass on savings from lower wholesale costs. 

“This should spark others into action and help bring down costs for drivers right across the country.”