10:19pm Thursday 9th July 2009
By Clive White
A new petrol pump price war has begun between supermarkets.
It was started by Asda yesterday, which cut its prices for diesel and unleaded petrol to below £1 a litre.
Hours later Bradford-based Morrisons followed suit. Both Asda and Morrisons were today selling their diesel and unleaded fuel at 99.9p a litre.
Announcing the price cut, Asda’s commercial director David Miles said while diesel prices had previously been higher than petrol, current costs meant this should no longer be the case.
The price of crude oil had been on the rise, but it was still less than half the 140 US dollars a barrel level it reached at its height last year. He said: “There is no justification for any major retailer selling fuel above £1 a litre.”
Morrisons announced its price cut saying that it would match the Asda price.
A spokesman said: “We will be selling both unleaded and diesel fuel for 99.9p in our stores up and down the country.
“This is a key time for people buying petrol in the UK as more people are expected to holiday in the country. By giving great value petrol, we will be helping people get to their destination more economically and giving them a little bit extra for their summer holiday.”
The cut in prices has been welcomed by the AA which believes a cut of 5p was on the cards after a $10 drop in the price of oil in recent days.
The AA’s head of public affairs Paul Watters said: “If the reduction in wholesale prices continues, the AA urges other retailers to pass on the savings.
“A 2p drop in the price of petrol saves the average UK family £4.34, which can then be spent in the high street, revitalising recession-hit businesses.
“Speculators in stock markets had a cold bucket of reality poured over them with the release of worse-than-expected US job figures last week.
“The AA hopes that this heralds a more realistic approach to oil pricing, without driving up fuel prices beyond where they need to be, undermining consumer spending and prolonging the recession.”
According to website petrolprices.com, the average charge per litre for unleaded has been 103.8p, ranging between 99.9p and 115.9p.
The average for diesel was 105.3p, ranging between 99.9p and 117.0p.
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