Why Are Supermarkets Slow To Pass On Fuel Savings To Their Customers?

Thu 17th Oct 2019

Britain’s major supermarket chains have been accused of cheating their customers in the wake of petrol price cuts.

While the wholesale price of petrol has been dropping steadily since the 7th October, it has taken almost two weeks for those savings to be reflected on the forecourt prices. Asda has cut 3p of the price of diesel and 2p off petrol, with Sainsbury’s and Morrisons looking to make similar cuts.

But the slow reaction has been criticised by leading fuel campaigners. Oil prices have been dropping since the beginning of October which means that supermarkets have been profiting nicely.

RAC fuel spokesman Simon Williams said: “Drivers are losing out badly, paying around 7p-per-litre more for petrol than they should be. The average price of petrol is 128p (127.58p) so should be 121p. This means a driver filling up a 55-litre family car is paying £3.85 too much (£70.40 today, instead of £66.55).

“Drivers can always tell when pump prices are too high as they will see supermarkets offering them significant money off at the pumps after spending certain amounts in store,” added Williams.

Asda meanwhile are adamant that their prices are a reason for celebration, with prices of 121.7-per--litre on petrol coming just at the right time for cash-strapped families.

Asda Senior Fuel Buyer Dave Tyrer said: "With wholesale costs falling and half term just around the corner, we’re pleased to be able lower the cost of fuel and pass these savings onto our customers. Drivers filling up at an Asda filling station will pay no more than 121.7ppl on Unleaded and 125.7ppl on diesel."