Asda leads way again with tax busting fuel price cuts
AS THE Chancellorâ€™s rise in fuel duty continues to cause controversy today, ASDA is set to be the â€˜darlingâ€™ of UK motorists once again with its 11th consecutive cut in fuel prices since July.
Unleaded will come down to 88.9ppl, while diesel is reduced to 102.9ppl â€“ the lowest price in the UK. These prices were last seen at the pumps in March 2007.
ASDAâ€™s new â€˜tax bustingâ€™ prices are effective across all of its 172 forecourts from tomorrow morning (2 December). ASDAâ€™s trading director Darren Blackhurst said:
â€œWeâ€™re determined to lower the cost of Christmas for our customers, and that includes making fuel more affordable.
â€œWe have slashed prices yet again despite the pressure of duty rises announced earlier this week. World oil costs are continuing to fall enabling us to make this move, however I fear many retailers will use the rise in duty as a smoke screen to profiteer at the expense of motorists.â€
Petrol retailers will need to absorb cost price increases as a result of the VAT drop and duty rise. ASDA calculates that retail prices would need to be at 110ppl in order for the rise in duty to accurately offset the fall in VAT. Current average retail prices are well below this figure â€“ meaning the rise in duty is actually higher than the fall in VAT, a situation which has been criticised today by the AA.
Despite this, ASDA is determined to pass any cost savings it makes as a result of falls in the price of oil to its customers.