New fuel price war ‘the only hope for drivers’
Thursday, 31 July 2008
Northern Ireland motorists were today leaving forecourts with their wallets a little fuller after leading supermarkets slashed fuel prices by up to 4p.
Retail giant Asda set the ball rolling by announcing it will cut the cost of unleaded by 2p a litre to 111.9p, and cap diesel at 124.9p, down a further 4p, at all seven of its fuel outlets here from today.
It’s the second wave of price cuts in 10 days, with Asda urging other petrol companies to charge motorists in Northern Ireland — where prices are among the highest in Europe — the same as their UK counterparts.
Tesco retaliated yesterday afternoon by bringing in cuts of up to 2p per litre on petrol and up to 4p on diesel, while Sainsbury's also pledged to slash petrol by up to 3p and diesel by up to 4p today.
Speaking to the Belfast Telegraph last night, Asda spokesman James Maxton challenged other companies to set prices nationally rather than locally, which would mean a better deal for drivers.
“When we cut prices 10 days ago, we brought the cost of petrol and diesel in Northern Ireland into line with the rest of the UK,” he said.
“In the past there may have been a 2p difference in price, depending on geographical location, but we have now implemented a uniform pricing policy across the board.
“We’ve shown others we can can do it. There’s no need to have a huge variation in prices. We are committed to offering Northern Ireland drivers the best deal.”
Tesco and Sainsbury's — who last night said they price their fuel locally and compete on cost within each area — did not weigh in on a price war in Northern Ireland earlier this month when Asda cut 3p from diesel and unleaded.
And rather than cutting fuel costs in forecourts here, like they did across other parts of the UK, Tesco and Sainsbury’s offered Ulster consumers ‘offers’ instead.
The latest cuts have, however, been welcomed by motoring organisations.
"Motorists have not had much good news this year but the price reductions led by Asda will bring a sigh of relief,” said AA Public Affairs spokesman Luke Bosdett.
But he warned that although the falling cost of petrol over recent weeks should mean cost savings for customers, Asda is the only retailer to have passed on the reductions across the board.
“The wholesale prices of petrol and diesel coming into the UK have fallen by 12%,” he said. “The amount that Asda has dropped its prices by in the last fortnight or so reflects that 12% drop.
“The others are talking about reducing their prices ‘up to’ a certain amount. That’s shorthand for ‘we will match what we have to’,” said Mr Bosdett.
“Asda is the only one to have passed in wholesale reductions across the board and anyone who hasn’t is making a fast buck at the expense of drivers.”
He added: “We urge retailers to stop dragging their feet and pass cost cuts on to their customers.”
The director of PetrolPrices.com Brendan McLaughlin also urged other petrol companies to follow Asda’s lead.
“This fresh round of price cuts is the only hope motorists have for lower fuel prices,” he said.
“Asda throwing down the gauntlet to other retailers to introduce a national pricing structure couldn't be better news for Northern Ireland, where motorists suffer from some of the highest prices in the UK.”
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Bill & Ben - what else are ya going to do with the fossilised remains? Are they eatable?
Francoise - Sure where the heck is there to drive on the IOM anyway?! A tank of fuel would last ye a year over there.
Posted by Section E Loyal | 31.07.08, 16:18 GMT
Wouldnt it make more sense to instead stop driving our cars using the distilled fossilised remains of dead animals and plants?
Posted by Bill and Ben | 31.07.08, 12:04 GMT
you should be here on the Isle of Man where Diesel is £1.40 and unleaded£1.29 then you can complain not eveyone that live here is a millionaire think of us Our elected MHK (MP) to you don't give a damm
Posted by francoise | 31.07.08, 12:00 GMT
"Slashed" fuel prices - are you having a laugh?
Posted by Simon | 31.07.08, 10:05 GMT
Fair play to the supmarkets taking on the so called 'Giants'. Its a pity in some cases you have to spend over £50 in store before you can avail of the cheap fuel. A good suggestion would be for the government to knock 10p off fuel duty and the suppliers to knock 10p a litre off their multi billion profits.
Posted by Martin | 31.07.08, 09:30 GMT