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SUPERMARKET PETROL PRICE BATTLE - THEY CUT 5P OFF A LITRE

Fuel price war

Tuesday July 22,2008

By Louise Barnett

Comment Speech Bubble Have your say(10)

A PETROL price war on supermarket forecourts yesterday brought much-needed relief to millions of motorists.

Fuel was cut by up to 5p a litre at four major chains – and rival filling stations are expected to follow.

Morrisons began by slashing both unleaded and diesel by 4p a litre from 6pm last night.

Asda responded by cutting up to 3p a litre off both fuels at all its forecourts from today.

Both said the falling wholesale cost of crude oil made the reductions possible.

Tesco and Sainsbury’s are offering 5p a litre off fuel to customers who spend £50 or more in their stores for a limited period. Experts predicted rival filling stations will be forced to follow up with their own price cuts.

The wholesale prices seem to have stabilised

Ray Holloway, director of the Petrol Retailers Association

Ray Holloway, director of the Petrol Retailers Association which represents around 6,000 independent forecourts, said: “The wholesale prices seem to have stabilised and if the trend is right, if it continues, then prices across the industry will come down.”

Motoring groups welcomed the reductions, which follow a record run of petrol pump price hikes this year, and said they hoped the trend would continue.

Luke Bosdet of the AA said: “We urge other fuel retailers to decrease their prices – and not only when they find themselves neighbouring an Asda or Morrisons petrol station.” Liz Kennett of the RAC said: “We would welcome any price cuts in petrol at a time when they are at a very high level.”

Morrisons cut its petrol and diesel by a flat rate of 4p a litre at all 285 of its forecourts last night.

The reductions will bring its unleaded down to an average 113.92p a litre and diesel to 127.23p a litre.

Asda is bringing its unleaded down to a flat rate of 113.9p and diesel to 128.9p a litre at all 170 of its forecourts across the country. That means cuts of up to 3p a litre.

Tesco is offering 5p a litre off fuel to customers who spend at least £50 in its stores for a limited period.

Sainsbury’s is running a similar promotion at its 247 petrol forecourts starting on Thursday for a fortnight.

Louise Doherty of comparison site PETROLPRICES.COM said: “Finally, some good news for motorists. Oil prices have cooled off from the record highs earlier this month so it is only right and fair that retailers drop their prices accordingly.”

Crude oil was about 130 dollars per barrel yesterday – down from a recent record high above 147 dollars a barrel.

Morrisons group store operations director Mark Gunter said: “The cost of crude oil and refined product has fallen in the last few days and we are ensuring our customers reap the benefit by passing on the saving quickly.”

Asda trading director David Miles said: “We are seeing a more stable reduction in oil prices allowing us to pass on the savings to customers. We urge other retailers to follow our lead at a time when customers need as much help as possible.”

Mr Bosdet of the AA said: “Since mid-July the wholesale gasoline price has fallen six per cent and the AA expects fuel suppliers to pass on – not pocket – the savings.”

Soaring pump prices mean motorists are paying an average 13 per cent more for unleaded and 17 per cent more for diesel than in January.

Unleaded was yesterday selling for an average 119.50p a litre and diesel 132.97p, according to the AA – a drop from 119.70p and 133.25p before the weekend, but still much higher than January’s average of 104.3p a litre for unleaded and 109.2p a litre for diesel.

Motorists in some areas are paying up to 132.9p a litre for unleaded and 146.9p a litre for diesel, according to PetrolPrices.com.

Petrol giant BP said last night: “Any changes take a short period to filter through the system.”

SMUDGE!

24.07.08, 10:01am

You are spot on with your comments about the Supermarkets.
Auntie Wainright's each and every one! !

• Posted by: kojak • Report Comment

ARE THINGS WHAT THEY SEEM?

22.07.08, 7:59pm

Remember the old saying "... if it seems like a bargain then it is not ..." This 5p. is not a bargain either, throughout the store they will have increased other items to cover this loss, and probably more. Their in business to make money and are very good at it. Your out smarted every time you enter. Sorry to be such a kill joy, but that's life.

• Posted by: Smudge16 • Report Comment

RE ALBERT:

22.07.08, 2:00pm

Here's me thinking the rises in food prices was because of the Chinese and Indians eating more meat in the diet, and the rise in gas and electricity bills because of North Sea gas running out, meaning we have to buy more of it on the international markets.

No, it's because of the Unions. Thank you Albert for setting me straight!

• Posted by: jacklemmon • Report Comment

BUT ALL IS NOT WHAT IT SEEMS.....

22.07.08, 12:28pm

read between the lines.

"Tesco is offering 5p a litre off fuel to customers who spend at least £50 in its stores for a limited period".

There's the catch. You've got to give Tesco's £50 or more to take advantage of it. Giving with one hand, taking it back with the other. Note the words "limited period".

I'd rather see cut in fuel duty across the board, rather than short term gimmicks intended to bring punters in.

Sorry to sound cynical but this is Britain, and I am.

• Posted by: Veltro205 • Report Comment

SUPERMARKET PETROL PRICE BATTLE-5P OFF.

22.07.08, 11:24am

Banish supermarkets, they have probably been the cause of thousands or even100s of thousands 'artistic licence ' of busines's going through the hoop ! Petrol stations even, what business can hold out against thier muscle ?
I hear Tesco is now going into communications !
Surely there is danger here monolithic / mega, super rich, super power, what a state we could allow citezens of UK to be put in ! No control, no control whatsoever, no control over anything, not even our own children, our own lives even. Come Alive.....where is the monopolies / competion, commision ?
Restore, rebuild, expand rail and canal network,
'Take' back UK' superstructure including our streets shops, way of life !
What superstructure you may well ask.
Question the Generals. !

• Posted by: juan01 • Report Comment

THIS SHORT TERM GOOD NEWS MUST UNDERSTOOD IN THE LIGHT OD REALITY.

22.07.08, 9:19am

No doubt this respite is good news, but make no mistyake industry insiders tell us the price is going up and up. The price of fuel could be as high as £2.00 a litre. This will make government happy because their share will not look so greedy. Fight back by installing Fuel Cells on your car. Depending on the fuel used they can save potentially up to and more than 100%. So if you are only burning 10 litres and wasting 40 litres of every 50 litres of your tank, installing a ...Tfuelcell.co.uk and getting the timing reset could potentially increase that figure form the 10 litres to 20 litres burn and thereby show a 100% improvement.

• Posted by: Insite • Report Comment