SUPERMARKET group Asda has shaken the petrol retailers with a promise that all its hypermarket petrol is to be sold at cost price. The company's declaration of the 'profit-free zones' was immediately attacked by the major fuel companies as a 'PR stunt' and they said that they would not be cutting prices to retaliate.

Asda's move applies to just 10 sites - although the company operates 120 forecourts - where prices for unleaded range from 49.9 to 50.9 pence per litre. The sites are based in Eastleigh (Hampshire), Edinburgh, Govan (Strathclyde), Lower Earley (Hants), Minworth (West Midlands), Patchway (Bristol), Pudsey (West Yorkshire), Trafford Park (Manchester), Wakefield (West Yorkshire) and Watford (Hertfordshire).

A Shell spokesman dismissed the move as a PR stunt saying that the majors were already charging Asda prices at many sites. Esso said Asda prices were within its own range. Tesco promised to continue matching local competition while Safeway claimed to sell at below cost price already.