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Supermarket sparks fuel price war
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12 January 2008
Britain's fourth-biggest supermarket, Morrisons, announced the reduction, which came into effect at 6am on Monday and makes the national average at its 285 forecourts 109.9p per litre for unleaded and 121.2p for diesel.
Tesco followed the move by pledging it would match the lowest petrol price in the local area at all its forecourts.
And Asda said it would drop prices to 109.9p per litre for unleaded and 121.9p for diesel nationally from Wednesday morning.
Oil prices have dipped nearly 30 US dollars a barrel in the past month amid mounting concern that slower economic growth is reducing global demand.
The move by supermarkets comes days after a survey revealed British motorists are forking out far more for their fuel than drivers in the major European vehicle-owning countries, a survey shows.
When Britons were paying around 119p a litre for petrol last month, Spanish drivers were being charged only 96p, the survey found.
Petrol and diesel was also cheaper in Germany, France and Italy, with diesel in Spain at £1 a litre compared with 133p a litre in the UK.
A Morrisons spokesman said the retailer's latest move meant it had cut 10p a litre off its diesel prices in the past 20 days, and 8p a litre off the price of unleaded on its forecourts in the same period.
It estimates customers will be paying up to £5 less for a full tank of fuel than they were just three weeks ago.
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