Asda leading the away with cut in petrol price
As we covered in one of our earlier posts, the price of oil has fallen from over $70 a barrel to under $60 a barrel over the last few days. Interestingly, while many petrol retailers across UK continue to charge in excess of one pound a litre, supermarket chain Asda has reduced the price on its forecourts to 99p a litre with a suggestion there was "little justification" to charge in excess of one pound a litre.
This is a direct challenge to the likes of Morrisons, Tesco and Sainsbury with consumer groups hopeful it will inject significant competition into the sector and pull the price of petrol below the psychological one pound a litre level. It is alarming that it has taken one company to go out on a limb before competitors reassess their own positions which further strengthens the argument that consumers, motorists in particular, are easy prey for corporate UK.
It is interesting to see that the UK government does not yet appear to have an opinion on the price of oil and the price of petrol although when you consider that the vast majority of the price you pay on the forecourts is taxation maybe this could explain the silence.
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