There has been a fall in the price of crude oil recently, and this should, in theory, result in a fall of petrol prices at the pump for drivers. Unfortunately, that is not always the way it works out. This time the U.K. government is going to make sure it happens. It has warned petrol firms across the nation that it’s going to watch them very closely to ensure that this fall in crude oil prices gets passed onto motorists.
Danny Alexander, the Treasury chief secretary, has demanded some kind of assurance that major players in the petrol industry are going to do the right thing and pass their savings onto drivers. Passing on these savings could help put more money back into the pockets of consumers, which can help boost the economy.
This announcement comes on the heels of the supermarket price war, during which giants such as Sainbury’s, Tesco, Asda and Morrisons cut their petrol prices by 1p. This cut came as a way to help drive in business. Now, however, these prices might fall even further. If the government has its way, Asda may have to slash its petrol prices to 119.7p a litre. This would be the very first time in nearly four years that its prices have been below 120p.
Chancellor George Osborne said that the message the government wants to send out is very clear: Oil prices have fallen, and it expects prices at petrol stations to fall with too. Petrol firms need to make this happen, and the government will be watching closely to make sure that it does.
Alexander also said that the government cut and froze fuel duty in an effort to help drivers get back on the road. Finally, the price of oil around the world is starting to come back down. It is very important that these savings get passed on to consumers. If they are not made aware of the fall in oil prices, they will continue to just pay the same prices they have been for years without a second through about it. Petrol firms could capitalize on this, but the government isn’t going to let them.
The Treasury chief secretary added that this is why he is calling on all fuel retailers across the UK to deliverer every penny of benefit they can to consumers in every part of the country. Seeing supermarkets drop their prices before this was even announced was a very welcoming sign. It is about time that consumers save a little money. It’s going to be a cold winter, and they may need the extra money to help pay for energy bills.