UK: Asda Continues to Drop Fuel Prices

ASDA's trading director Darren Blackhurst said: "We're determined to lower the cost of Christmas for our customers, and that includes making fuel more affordable. "We 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 t he rise in duty as a smoke screen to profiteer at the expense of motorists."

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 – meaning the rise in duty is actually higher than the fall in VAT. 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.

PetrolWorld 031208