Petrol 'Price War' Declared by Supermarkets

By Michael Ross
Published on 22 Jul 2008
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Petrol 'Price War' Declared by Supermarkets

Three chains have cut prices, after a recent retreat in wholesale oil costs.

Motorists are feeling the benefits of the "price war" which has recently broke out among supermarkets' petrol stations.

Recently, record wholesale oil costs have pushed up the general cost of fuel for the consumer, including prices at the pump. Over the past year, the average litre of petrol has increased in price from 97p to £1.20 in the UK, according to figures from the AA.

Reacting to this, three supermarket chains have announced cuts to costs this week, in a bid to attract extra custom from cash-strapped motorists.

Asda and Morrisons have announced reductions of 3p and 4p per litre of petrol, with Sainsbury's also announcing a 5p cut to become effective on Thursday. The latter offer is only available to customers who spend over £50 on groceries and other Sainsbury's goods, and will only be available for the next two weeks.

The supermarkets have indicated that the reductions come as a reaction to the recent retreat in wholesale oil prices, where prices per barrel have declined $17 from last month's peak of $147.

Commenting, Edmund King at the AA said: "Asda's petrol price drop is excellent news for UK motorists and we urge other fuel retailers to reduce their prices - and not only where they find themselves neighbouring an Asda petrol station."

Mr King also had harsh words for Britain's energy suppliers, who, he suggested, were keeping prices falsely high.

"We have seen two drops in European wholesale fuel prices so far this summer, with the UK motorist seeing next to no benefit," he said. "Since mid-July the wholesale gasoline price has fallen six percent and the AA expects fuel suppliers to pass on, not pocket, the saving for the good of UK families, hauliers and the economy."
 

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