Retailers are urging the coalition Government to urgently tackle the rising petrol prices.

The RMI Independent Petrol Retailers Association, which represents two-thirds of the country’s 9,000 forecourt sites, has written to the Prime Minister asking him to set up a working party of Government and industry to tackle the issue.

According to The Telegraph, the letter warns that looming fuel duty and VAT increases will add 5p a litre to pump prices, even without the recent rebound in the price of crude oil.

PMI Petrol Brian Madderson said: “We’ve had the pain but there’s been no effort by government to commence discussions with industry.

“If we don’t get some kind of respite, the knock-on effect is going to start to impact on a return to growth for the economy.”

He asked the government to take action on pre-election pledges, the Conservative proposal to consult on a fuel price stabiliser and the Liberal Democrat promise to look at measures to help with fuel costs in remote rural areas.

Separately, Asda today revealed it was cutting the price of both unleaded and diesel by up to 1ppl and 2ppl respectively. It has committed to hold down these prices for at least two weeks, up to the August bank holiday.

Andy Clarke, Asda president and CEO said: “These are increasingly uncertain times for millions of families across the UK, and it’s clear from all the data customers will need us more than ever.

“We’re shopkeepers not economists, but in this ‘age of austerity’ we know the pennywise will thrive. Our stimulus package for the economy starts with saving our customers money every time they shop –real money that can be saved, or spent elsewhere.”

Asda, which releases its Q2 results later today, claimed that it has saved customers more than £100m so far this summer with its price drops, calculated on its Price Guarantee. It is now charging £1.25 for 4 pints of milk, down from £1.53, and 63p for 6 Smart Price eggs, down from 91p.