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Asda sparks price war with petrol and diesel 99.9p a litre
Jonathan Prynn, Consumer Business Editor09.07.09
A new petrol price war kicked off today when a supermarket chain slashed the cost of a litre of unleaded and diesel to less than £1.
Asda said all 176 of its forecourts dropped petrol and diesel forecourt prices to 99.9p compared with a national average of 103.8p for unleaded and 105.1p for diesel.
It is the first time petrol has cost less than £1 since the start of June, saving drivers about £2 to fill up a typical family car. The saving is even bigger for the 40 per cent of drivers with diesel vehicles, with about £2.50 off the cost of a tank of fuel.
The move is expected to be followed by other supermarkets, particularly Morrisons. David Miles, Asda's commercial director said: “There is no justification for any major retailer selling fuel above £1 per litre — that is why we are delighted to be able to reduce both petrol and diesel to 99.9 pence per litre for all our customers.”
The start of a new round of forecourt price-cutting follows a period of fast-falling oil prices. The price of a barrel of oil has slumped by more than $10 to about $62 over the past week on fears about the stalling world economic recovery.
That in turn has fed through to falling wholesale petrol prices, which effectively determine fluctuations in pump prices. The wholesale petrol price had fallen from $665 a tonne at the end of June to about $595 a tonne earlier this week.
Drivers have started to complain that oil companies and other petrol retailers have once again been slow to pass on the savings to ordinary motorists.
Luke Bosdet of the AA said petrol prices had been due for a fall after sticking several pence above the £1 level for the past two months. The average price rose almost 5p between mid May and mid June, the second highest monthly rise on record.
Yesterday the Government came under pressure from MPs to scrap the scheduled 2p rise in fuel duty in September to help ease the pressure on motorists.
Commons Leader Harriet Harman admitted that there was “real concern about the increase in fuel prices, not only the cost of petrol at the pumps but also the effect on people in their homes and businesses of the increase of the oil price”.
Reader views (17)
What I want to know is can i sue them for charging me £3.00 for 3 litres (for example) when I should only be charged £2.99.7p
I find this .9 extension to petrol prices totally ridiculous.
- Steve Peto, United Kingdom
Dhan Raj, are you preparted to also pay more for your food, clothes, etc, then as well?
- Matt Smith, Oakham
hasn't anyone noticed that government in this country does not represent the ordinary citizen in the uk but is there purely as a money-making machine for the already haves....and to keep the have nots' in their place?
- L H Simpson, farnborough...uk
You can get it for approx 80p in most of Euroland.
- Never Eat Tuna Again, London
It's OK when you live in London, with all kinds of public transport. In Scotland and more rural parts of the country it is different. I am disabled and would have to walk over a mile just to get a bus, therefore a car is a lifeline for me.
- Alan Hogg, Symington, Scotland
if Harriet Harman has any thoughts or cares for the voting public over rising fuel costs, SHE, is in a position to do something about it. SO WHY DOESN'T SHE publicly tell the government to CUT TAXES on ALL TYPES OF FUEL.
Oh Sorry she is a sheep and follows the pack and won't say any thing as to rock the boat!!!!!!
NO WAY WILL SHE PUBLICLY SPEAK OUT ABOUT IT IN FRONT OF THE GOVERNMENT.
- Allan Pointon, Stafford,UK
A while ago the difference between petrol and diesel was about 5p to 7p a litre,now it is level at 103p per litre for both,at Sainsburys in Chichester,what is going ?
- Rez, bognor
PART OF THE REASON WE ARE IN RECESSION IS BECAUSE FUEL FOR TRANSPORT IS AND ABSOLUTE RIP OFF IN THE UK ,WE GET ALL THE CLAP TRAP ABOUT SO MUCH A BARREL, THE UK TAX ON FUEL IS AN INTERNATIONAL DISGRACE,ALL IT DOSE IS GIVE THE GOVERNMENT A FALSE SENSE OF SECURITY.THATS WHY THEY KEPT THE NORTH SEA OIL FROM THE SCOTS,THEY CANT RAISE REVENUE THROUGH INTERNATIONAL TRADE SO THEY RIP OF THIER OWN CITIZENS TO COVER THEMSELVES.
- Sara, london
Dhan Raj, Basildon
And what do buses run on Dhan? The city is full of empty smelly buses pumping Diesel toxins. Fact is Fuel prices are kept high because Gordy is milky us for tax.
- Gary, Brentwood
The price of fuel seems to be cheapest in those areas with the best public transport. Out in the sticks of Cambridgeshire the price is always around 4p or 5p per litre more expensive than the greater London area.
I can't understand why supermarkets don't have a national price for fuel. The usual excuse is the cost of distribution, but if that's the case how do they manage to have a national pricing policy for the items on their shelves?
- Scotty, Cambridge UK
Dhan, many people need their cars as public transport is either non existant or too expensive and shouldn't be punished by the government. Think about places outside of the London area.
- S-M Hearmon, London, UK
When petrol was 50p a gallon in the 70s, the Tories tried to raise it but were stopped by the labour party.
T H Leeds
- Thomas Hayes, Leeds UK
Soaring prices due to Labour in need of more money to waste after Brown has brough this country to its knees that's all this is.
Thanks Asda!
Any chance you can make sure all of your employees sign the petition asking Brown to resign now as that would be really helpful too!
- Faye Collins, London
In reality the price for diesel is
83P - after tax
- Jack, London
And we think petrol is expensive here in Australia @ $1.20 / litre (approx 57p / litre)
- James, Melbourne, Australia
Increase the duty on fuel so that people think more carefully before jumping into their cars instead of walking or taking the bus.
- Dhan Raj, Basildon
I know of many places around the country where it has been this price for all this year. HYPE petrol prices are nothing more than TAX for the overspending Labour party. The real price should be around 90p.
- Ge, Kernow
