Friday, June 24, 2011

Tesco petrol price cut prompts rivals to follow suit

Tesco cuts 3p from a litre of petrol and diesel after move to open up emergency reserves by the International Energy Agency

Tesco has cut its fuel prices following a big fall in the cost of oil internationally.

The supermarket slashed 3p off a litre of petrol and diesel following the opening of emergency reserves by the International Energy Agency (IEA).

Tesco UK chief executive Richard Brasher said: "We know our customers are feeling the pinch at the moment, so we want to pass on the benefit of a fall in oil prices straight away."

The Tesco move will offer some respite to motorists who have seen average prices at the pumps soar to around 136p a litre for petrol and almost 140p a litre for diesel.

AA president Edmund King said: "We welcome this rapid 3p reduction in fuel prices. Earlier this week the AA revealed that high fuel prices are now affecting a record three-quarters of drivers who are having to cut back on journeys, cut back on other expenditure, or cut back on both.

"Reduced fuel prices will help the general economy to recover as lower prices at the pumps means more spending elsewhere."

Crude prices slumped by $6 a barrel after the IEA, whose 28 members include Britain and America, unveiled plans to release 2m barrels a day for a month from its emergency reserves to counter shortages created by the conflict in Libya.

Sainsbury's said it would be cutting fuel prices by up to 3p a litre from midnight on Friday. A spokesman for the company said: "Sainsbury's continues to be one of the most competitive retailers on price and that includes fuel. We know that consumer budgets are stretched, so from tomorrow our fuel prices will be dropping. This is to ensure that we continue to be one of the cheapest places for motorists to fill up their tank."

Asda is also cutting its prices. From tomorrow morning the company will knock up to 3p a litre from the price of fuel, meaning drivers will not pay more than 130.7p a litre for petrol and not more than 134.7p a litre for diesel.

Asda's petrol director Andy Peake said: "Once again, Asda leads the way in saving drivers money. And unlike others our price cuts are across the board. That's why no one will pay a premium for their petrol to fund lower prices in another town round the corner."


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Source: http://www.guardian.co.uk/money/2011/jun/24/tesco-petrol-price-cut-rivals-follow

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