Asda leads petrol price cut

8 Nov

Hundreds of supermarket filling stations will be offering cheaper fuel from Thursday . Asda led the way, announcing a 2p cut in petrol and diesel. Sainsbury’s and Tesco have followed suit and are promising price cuts of “up to 2p a litre”.

Asda said its reductions would mean motorists paying no more than 131.7p a litre for petrol and 137.7p a litre for diesel. Andy Peake, Asda’s petrol trading director, said: “Unlike other retailers, our price cuts benefit everyone across the country, meaning that no one filling up at Asda will be forced to play a postcode lottery.” David Bizley, RAC’s technical director, said: “These price cuts are welcome, but they only solve part of the problem. The price that motorists pay on the forecourt is almost 60% tax, with a recent study showing that a record 81p from every litre of petrol sold now goes to the Treasury in fuel duty and VAT.

“What the British economy desperately needs is fairer-priced fuel on a long-term basis. As a supporter of [campaign group] FairFuelUK, we are lobbying the government to reduce the amount of tax on petrol and diesel, as we believe this will help to stimulate the economy and generate more income for the Treasury.

“We are calling on the government to increase transparency and make it a requirement for fuel retailers to print the duty on receipts so that the motorist can clearly see how much of the price is tax, how much is VAT, and how much is going to the retailer.”

Edmund King, president of the AA, said: “Once again the supermarkets have led the way on fuel price reductions. We have said there is scope for price cuts given wholesale price falls and welcome the move, and hope all the other retailers follow.”

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