As per reports, this is the second time in a week, the supermarket chains Morrison and Asda have cut the price of petrol. It is assumed that this is a result of supermarket price war and sharp falls in the underlying price of crude petroleum.
Who responded first and what’s their offer?
Reports suggested that Morrisons, which is the fourth largest supermarket chain in the United Kingdom, was the first supermarket company in the country to respond to the war on fuel prices. The supermarket chain decided to provide its customers with petrol for the price as low as $47 a barrel. It was earlier reported that the retailer sold petrol for $55 a barrel even in mid-April but they reduced their prices fearing the falling oil prices around the globe.
These sudden changes made Morrisons sell unleaded fuel at 112.9p whereas diesel at 113.9p, but only a few hours later the supermarket chain in the UK, Asda, responded to the situation and reduced its price to 112.9 for both unleaded and diesel.
What can be expected from competing supermarket chains?
It is expected that the rival organizations of Morrisons and Asda, Tesco and Sainsbury’s are to cut their oil prices to a five-month low considering the global scenario. Due to the recent rise in the US fracking production and weak demands in China and worries about the Organization of Petroleum Exporting Countries’ further supply cuts are contributing to a global glut of crude.
What are the people saying?
Recently, the motorist group, The RAC commented on the matter and said, “It’s rare to see two price cuts from a supermarket in one week, let alone the introduction of a price cap which is great news for motorists across the country as it brings some very welcome pricing reassurance as well as helping to reduce the effects of the postcode fuel lottery.”
How are these benefiting people?
A study suggests that the fight between supermarket chains in the UK regarding cutting fuel prices is helping the drivers to save £1 on the cost of filling up a typical hatchback. It clearly indicates that the cheap petrol prices will be the welcome change to households’ budgets which were hit hard by the rising inflation in recent months.
Reports suggested that the petrol prices jumped from a low of 101p in February 2016 to 120p in March 2017 on an average. This has been a major factor in pushing up the consumer price index.