Yesterday (12 January) saw three forecourts in the West Midlands drop their petrol prices to 99p a litre according to reports, whilst Tesco, Asda, Sainbury’s all announced that they are cutting another 2ppl off unleaded and diesel prices, effective immediately for Tesco and from midday today (13 January) for Asda and Sainsbury’s.
The price drops – the lowest since 2005 – have been greeted by the RAC. Fuel spokesman Simon Williams said: ‘The decision of three forecourts in the West Midlands to sell petrol for under £1 a litre – last seen in 2009 – is clearly having a ripple effect on the supermarkets as they are continuing to bring their prices lower still. With a barrel of oil now costing around $47, we are surely only weeks away from the milestone price of £1 a litre being a common sight at petrol stations up and down the country. This will also have a very positive effect on reducing the average price of both petrol and diesel for motorists everywhere.
‘And, as the current over supply of oil is believed to be part of a long-term OPEC strategy to keep oil prices low, there is every reason to think that motorists may well enjoy low prices for some time to come. However we are now getting to a point where the share that the Treasury takes from the forecourt price is nearing 75% which is a bitter pill for motorists and retailers. We should perhaps be seeking a commitment from all the major political parties that they will not look to increase fuel duty in the next parliament.’
Meanwhile Chevin Fleet Solutions has said that the increased competition in oil and petrol fuel prices means fleets have a real opportunity to make new operations savings.
Ashley Sowerby, managing director, said: ‘Fleet managers will rightly view these savings as a bonus but they should not sit back. Instead, they should ensure they are benefiting from the price competition that we are seeing. With a little online research to find the best prices available and by using their fuel cards and fleet software, they will be able to do even better.
‘Simply guiding drivers towards the cheapest local outlets available could easily give you an extra five pence per litre above what you are already saving through the general price decreases across the market.
‘Your fuel card data and the analysis tools available in your software will let you see which drivers are complying and also allow you to demonstrate the kind of savings that are being achieved. It is a worthwhile win for relatively little effort.’
