99.9p a litre coming to an ASDA store near you

PiKe

PiKe

PiKe

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http://www.asda-press.co.uk/pressrelease/306

ASDA Moves Petrol and Diesel to 99.9p Nationwide

"Little justification for selling fuel above 100p per litre" David Miles, ASDA Commercial Director as average UK pump prices stood at 103.8p a litre for unleaded and 105.1p for diesel

ASDA today dropped the price of both petrol and diesel to 99.9p per litre nationwide across all its 176 forecourts, despite others being reluctant to pass on recent cost falls to their customers.

UK motorists have become accustomed to diesel prices being consistently higher than petrol, but the reality of current costs means that this should no longer be the case. With average UK pump prices yesterday standing at 103.8p a litre for unleaded and 105.1p for diesel, many fuel retailers are failing to pass on lower diesel costs to their customers.

David Miles, ASDA Commercial Director said: "There is no justification for any major retailer selling fuel above £1 per litre - that is why we are delighted to be able to reduce both petrol and diesel to 99.9 pence per litre for all our customers in line with falling costs. ASDA is offering value to all drivers nationwide and we can guarantee all our customers that they'll get a fair price for their fuel no matter what they fill up with at the pump."

In further evidence of the complete turnaround from this time last year, when diesel was 13p per litre more expensive than petrol, it is the price of diesel that has fallen back the most as European diesel usage has declined. Diesel costs are currently stable and for the first time since May 2007 mean that diesel and unleaded prices should be the same price at the pump.
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Was waiting for this, he is right. There is no justification for the prices we are seeing at the pumps at the moment.

Good job Asda, its just a shame that we need supermarkets to drive the competition these days.
 
Well done Asda.

Just out of interest, why has petrol gone from ~90p/L to 103.p/L in the space of about 2-3 months? Is there a simple answer?
 
all the other supermarkets will follow suit

they already use petrol as a loss leader so it wont hurt them to match.

Once all the major supermarkets go down, the dedicated petrol retailers will have to reduce by a proportionate ammount, to stop them getting priced out of the market.

Nobodys going to pay 104p / l at shell if all the supermarkets are 99p.
 
I doubt we'll see a 1p drop round here. No supermarket fuel for the catchment area of the local BP and Total garages.

I just wish they'd sell Ultimate/V-Power that isn't 5+ miles out of my way.
 
No ASDA's close enough round here to make it worthwhile. Tho the local Tesco has kept it down to 101.9 recently.
 
Is there a simple answer?
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Well, the $10 a barrel rise over the last week is attributable to one rogue trader buying a hell of a lot of oil futures - this caused other brokers to think something was about to happen (i.e. a political event - war etc, which would lead to an increase in demand) and they jumped on the bandwagon too, driving the price up. When it was figured out that this trader acted on no such information, this dropped the price of oil back to $60 a barrel and lost his employer (PVM) £6million in the process.

This will also have a knock on effect in a few months time (when the 3 month futures get pumped/delivered) - they'll be a glut of oil, creating oversupply so there will likely be a drop in price as well. This is why there is talk of banning futures trading in oil.

As far as the oil price increase since the beginning of the year - the increase from $31 a barrel to around $70 is a result of the optimism that has grown for an economic recovery and therefore a rise in energy demand. This rise really is down to simple supply and demand.
 
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Gaygle said:
Well done Asda.

Just out of interest, why has petrol gone from ~90p/L to 103.p/L in the space of about 2-3 months? Is there a simple answer?
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Greedy oil companies using the recession as an excuse to rape British citizens of even more money?
 
Greedy oil companies using the recession as an excuse to rape British citizens of even more money?
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I believe you are confusing the oil companies with the British government.

Just out of interest, why has petrol gone from ~90p/L to 103.p/L in the space of about 2-3 months? Is there a simple answer?
Click to expand...

Whether this is a simple answer depends on your understanding of market forces and suspect futures trading practices.

The $10 a barrel rise over the last week is attributable to one rogue trader buying a hell of a lot of oil futures - this caused other brokers to think something was about to happen (i.e. a political event - war etc, which would lead to an increase in demand) and they jumped on the bandwagon too, driving the price up. When it was figured out that this trader acted on no such information, this dropped the price of oil back to $60 a barrel and lost his employer (PVM) £6million in the process.

This will also have a knock on effect in a few months time (when the 3 month futures get pumped/delivered) - they'll be a glut of oil, creating oversupply so there will likely be a drop in price as well. This is why there is talk of banning futures trading in oil.

As far as the oil price increase since the beginning of the year - the increase from $31 a barrel to around $70 is a result of the optimism that has grown for an economic recovery and therefore a rise in energy demand. This rise really is down to simple supply and demand.
 
This is excellent news.

When petrol prices were crazy I think it was Asda who brought the prices down a hell of a lot and everyone followed suit.

Although what's to say Tesco doesn't go one better and starts selling at 97p/l, Morrisons at 95p/l etc :p
 
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