There is finally some good news for motorists in the UK. It appears that a price war between supermarkets has been triggered by Asda. This new wave of a price war started after Asda announced that it would be knocking off 2p per litre from its diesel and unleaded petrol prices. This reduction takes place as of today.
That being said, other supermarkets around the UK are not going to let this reduction go unnoticed. After all, the whole point of having lower petrol prices is to help bring in more customers, as they would be more likely to shop at the area that has the lowest prices. This has caused other supermarkets to make the same claim.
Overall, this has been a very welcome move by consumer groups. However, there are still some campaigners that are not happy. Although they are pleased as to what the supermarkets are doing, they still believe that the government should be cutting fuel duty. This would be a great way for the government to help struggling households that are still suffering from the economic squeeze.
Asada’s new national cap will be around 130.7p per litre for unleaded. This puts its diesel prices at 134.7p per litre. Some of the other stores that have already vowed to lower their petrol prices as well include Sainsbury’s, Tesco and Morrisons.
Asda said that it decided to lower petrol prices after it commissioned a report from the Centre for Economics and Business Research. This report found out that consumers in the UK are actually £1 a week worse off than what they were a year ago. Although this does not sound like a lot, it does add up. This is Asda’s way of giving back to their loyal shoppers.
This report went on to add that this is an ongoing problem. In fact, households are about £8 a week worse off than what they were in 2010. A lot of this has to do with not only the price of petrol but with the price of clothing. Both of these products have seen their prices increase over the past few years.
The petrol trading director for Asda, Andy Peake, said that he was able to bring down the price of petrol because of a fall in the world’s oil prices. This fall was viewed just last week, so Asda has wasted no time in passing this savings on to consumers.
Peake added that the price of oil actually came down $5. Although Asda has no idea where the oil prices will be a few weeks from now, consumers can rest assured that Asada will continue passing the savings on to their valued customers.
Despite this big talk from Peake, this is the first cut that consumers have seen in petrol prices since last month. That cutback in prices came after AA slammed supermarkets, as well as oil companies like BP, for scamming money off petrol prices. It will be interesting to see if Asda continues to follow through with its word to keep prices low.