Supermarkets lead way in petrol price wars in Gloucestershire
PETROL price wars are hotting up on the forecourts around Cheltenham.
Motorists in the town could save hundreds of pounds on their bills as leading supermarkets Asda, Morrisons and Waitrose all promised to slash the price of fuel by as much as 3p a litre.
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Petrol pumps
But transport companies in the town said there needed to be more consistency in the prices for it to have any helpful effect on their business. The drop comes just weeks after fears the price of fuel would reach a record high in the UK.
Asda was the first to make the pledge, saying it would cap prices at 135.7p for unleaded and 139.7p for diesel at its site in Up Hatherley.
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It was followed by the other two supermarkets, which both promised to match Asda.
Janet Lawrence, of family-run firm Bob Lawrence Light Haulage in Castlefields Road, Cheltenham, said many transport firms were having to absorb the changes in prices.
She said: "Any reduction in fuel is going to be good but it must be sustained.
"It may give us a momentary benefit but, in the long term, it is not going to do anything unless everyone else follows the lead.
"We may get 1p off this week but there could be 3p going back on again the next.
"It fluctuates so much and we need to have more consistency.
"Fuel is our main expenditure but budgeting for it is hard. We cannot just change our prices as the cost of fuel goes up and down."
The cost of oil has fallen in the past 10 days with Brent crude in London sliding six per cent to US$110 a barrel.
But this is still 25 per cent higher than in mid-June.
Earlier this year the Office of Fair Trading (OFT) launched a review into whether or not reductions in the price of crude oil were being passed on to motorists.
It will explore a number of claims about how the road fuels sector is functioning, including whether supermarkets and major oil companies are making it more difficult for independent retailers to compete.
Economists have warned the rate of inflation is not likely to fall as rapidly as forecast due to pressure from oil prices.
Comments
by Matt1006
Thursday, September 27 2012, 9:33AM
“3p off a litre is a start (2p off at Tesco in Cheltenham this week already), but is nothing like a price slash. At least 10% off needed to be called a slashing of prices, so that's got to be about 14p off a litre, which isn't going to happen.
The reductions this week are a start, but how much more off we see remains to be seen. We've seen previous reports this year of supermarket fuel price wars and so far they haven't happened - a few pence off a litre, which is all back on within a month or so.”
by alan9876
Wednesday, September 26 2012, 10:47PM
“Unless these oil giants who supply the retailers stop acting like a cartel, then any reduction in price will be short lived. Either they should be broken up to generate competition or nationalise them and let the profits come straight back to the taxpayer and reduce the other tax burdens.”
by alan9876
Wednesday, September 26 2012, 10:47PM
“unless these oil giants who supply the retailers stop acting like a cartel, then any reduction in price will be short lived. Either they should be broken up to generate competition or nationalise them and let the profits come straight back to the taxpayer and reduce the other tax burdens”
by alan9876
Wednesday, September 26 2012, 10:46PM
“unless these oil giants who supply the retailers stop acting like a cartel, then any reduction in price will be short lived. Either they should be broken up to generate competition or nationalise them and let the profits come straight back to the taxpayer and reduce the other tax burdens”
by joholly
Wednesday, September 26 2012, 8:03PM
“No big deal, the average punter would save about £60 a year but the price war will only last a month, possibly two, so the plebs will save ten quid. Is someone in the Echo on the payroll of the large supermarkets?. All this does is damage the independents, in the long term we all lose as the big boys will simply act as a Cartel....
A long term SUSTAINABLE rise in the oil price will be a good sign as once it happens it means we are about eight months away from coming out of the global recession”
by joholly
Wednesday, September 26 2012, 8:02PM
“No big deal - the average punter would save about £60 a year - but the price war will only last a month, possibly two - so the plebs will save ten quid. Is someone in the Echo on the payroll of the large supermarkets?. All this does is damage the independents - in the long term we all lose as the big boys will simply act as a Cartel....
A long term SUSTAINABLE rise in the oil price will be a good sign - as once it happens it means we are about eight months away from coming out of the global recession”
by joholly
Wednesday, September 26 2012, 8:02PM
“No big deal - the average punter would save about £60 a year - but the price war will only last a month/possibly two - so the plebs will save ten quid. Is someone in the Echo on the payroll of the large supermarkets?. All this does is damage the independents - in the long term we all lose as the big boys will simply act as a Cartel....
P.S. A long term SUSTAINABLE rise in the oil price will be a good sign - as once it happens it means we are about eight months away from coming out of the global recession”
by valhalla2010
Wednesday, September 26 2012, 7:42PM
“OK gas gas, I think you made your point.”
by LordGagas
Wednesday, September 26 2012, 6:26PM
“TIG on form, i see.”
by LordGagas
Wednesday, September 26 2012, 6:16PM
“When i see people driving sensibly, i will agree that the price of fuel is too dear”