A PETROL price war is set to explode after Asda slashed fuel prices to its lowest level since April last year.

Unleaded petrol has been cut from 79.7p a litre to 76.9p.

Tesco has already responded by matching the price cuts.

Other petrol outlets in Swindon say they will have no choice but to try to follow the supermarkets' lead.

Sean Prowse, from the Dorcan Way Service Station (Esso), said: "This is going to start a price war. We will follow the market. If someone like Asda reduces it then we will probably have to follow.

"The trouble is they sell petrol as a loss leader and make money on other items. It's clever marketing because they'll get the money back from the customer one way or another."

Rob Mortimer, manager of Rodbourne Service Station in Rodbourne Road, which is owned by private company Rock and supplied by Esso, said: "If they have gone that low we probably would have to do the same. I can't speak for other petrol stations in the town but we try to keep our prices the lowest."

And Shital Manro, manager of Shell Oasis, Great Western Way, said: "The last time this happened it led to everyone doing the same.

"We're very competitive and tend to stay among the lowest prices so we will probably have to follow Asda. We did before." With Asda and Tesco both now selling unleaded for 76.9p a litre, their main rival Sainsbury's is likely to follow.

Sainsbury's Vicky Cotton said: "We are committed to providing the best possible value for fuel and our prices remain competitive.

"We have a local pricing policy and are committed to offering the lowest price in the area at our stores." Tesco spokesman Tom Siveyer said Tesco would not hesitate to match Asda's prices.

He said: "Tesco won't be beaten locally on petrol prices.

"Following any action from our competitors our prices will be adjusted accordingly."

Paul Mancey, Asda's trading director, said the company would continue to have the lowest petrol prices.

He said: "Our aim is to be the first to drop prices when our costs fall we do this across the whole of our business without exception.

"Now we deliver again offering the lowest pump prices across the UK.

"There can be no excuse for profiteering from high fuel prices.

"Customers have had to pay more in the past year as costs have risen and should now be paying less.

"Other fuel retailers should follow our lead without delay."

Litre of unleaded

Asda Wal-Mart, Orbital Shopping Park, 76.9p

Blagroves Service Station, Great Western Way, 87.9p

BP Express, Cricklade Road, Penhill, 80.9p

BP, Swindon Road, Wootton Bassett, 79.9

Dorcan Way Service Station, Dorcan Way, 80.5p

Kanservices, Bridge End Road, Stratton, 85.9p

Malthurst Retail Ltd, Flemming Way, 81.9p

Newport Street Service Station, 83.9p

Queens Drive Service Station, 82.9p

Rodbourne Service Station, Rodbourne Road, 79.9p

Sainsbury's, Oxford Road, Stratton St Margaret, 79.7p

Save Swindon, Marlborough Road, Coate, 85.9p

Shell Garage, Marlborough Road, 79.8p

Shell Oasis, Great Western Way, 79.8p

South Marston Service Station, Shrivenham Road, South Marston, 80.5p

Tesco, Ocotal Way, 76.9p

Total Convenience Stores, Mead Way, 79.9p