GWENT fuel protester David Handley (pictured) has welcomed a move to cut fuel prices on supermarket forecourts.

The Monmouth dairy farmer, who was a leader of the September 2000 petrol protests which brought Britain to a virtual standstill, was concerned by news at the start of last month that forecourt prices had increased by 4p a litre since January.

Mr Handley, chairman of the Farmers for Action and People's Fuel Lobby, told the Argus at the time: "Another hike in fuel prices would kill the rural area.

"We can't take another hammering after foot-and-mouth. Contingency plans are in place, should we need them, and can be put into action within hours."

But yesterday Mr Handley said: "We met Asda ten days ago and their decision is good news.

"We were delighted with the Chancellor's Budget and feel that we have had a win - let's hope we can get it as low as can be sustained and keep it there."

Asda confirmed that on Monday they cut fuel prices by a minimum of 1.2p per litre, bucking recent oil company moves that have led to a six per cent rise in the price of fuel in the last six weeks.

A spokesman from the Petrol Retailers' Association said: "Petrol prices in the forecourts have actually gone down since Monday.

"Major supermarkets have started a price war. Asda have abolished their loyalty card scheme and cut fuel prices instead. Morrisons and Tesco have also cut prices. "It's good news for motorists but means that most retailers are selling petrol with little or no profit."

But he said: "The industry appears to be relatively stable because Chancellor Gordon Brown put a blanket freeze on fuel duty. Hauliers and farmers breathed a sigh of relief, because had Mr Brown introduced fuel duty, protests would have started up."