Asda In Black Friday U-Turn - On Fuel

Asda has slashed unleaded fuel prices to below £1 a litre for three days - despite saying it would not be participating in Black Friday discounting.

The supermarket chain - which was among the founders of the US shopping event in the UK but chose to boycott bargains this year - said it would offer petrol at 99.7p a litre until Sunday night.

The 4p discount marked the first widely available unleaded price below £1 since 2009.

Diesel was also reduced, by 3p a litre, to 103.7p.

UK average pump prices on Thursday, according to Experian Catalist figures, were 107.7p for petrol with diesel at 109.9p.

Asda told Sky News on Thursday that its decision not to participate in Black Friday sales in-store or online was a "calculated risk" - partly as it wished to avoid the fights among shoppers for big-ticket goods witnessed last year.

It said it was choosing to offer discounted goods across the festive season having identified apathy for Black Friday among its customers.

The discount shopping day was proving to be less frenzied on shop floors for retailers choosing to participate this year - with experts predicting the bulk of the £1bn expected spend to be made online.

Asda boss, Andy Clarke, credited the Autumn Statement for its cut to pump prices.

He said: "The Chancellor's freeze on fuel duty is what our customers were hoping for.

"We'd urge the Chancellor to continue with a freeze on fuel duty in the March Budget to help maintain discretionary income levels for families."

The AA described Asda's cut-price petrol move as a "marketing gimmick".

The motoring organisation's president, Edmund King, said: "Pump prices haven't been below £1 per litre for five-and-a-half years.

"Some drivers may wonder why petrol isn't one pound per litre across the board with oil trading at under $50 per barrel."

A report by the RAC a week ago had suggested that a more widespread fall towards £1 a litre was possible early next year.

A barrel of Brent crude is currently costing just over $45 - reflecting high stockpiles and production amid weak demand because of the economic slowdown in China and many emerging markets.

The glut is explained by several factors, including a refusal to slash output within the Organisation of the Petroleum Exporting Countries (OPEC) cartel as it battles to keep market share - with US shale oil flooding the market.

Russian production is at record levels as it attempts to maximise revenues from losses to income through economic sanctions.

They were imposed by the West for Moscow's actions in Ukraine.

A warm autumn in both the US and Europe has also been credited with pegging oil costs down - with a recent note by Goldman Sachs indicating that prices could halve if warmer weather persists in the current market climate.