20/11/2008

Festive Season Prompts Supermarket Pump Price War

There's been yet another cut in the price of petrol as the big supermarkets look set to wage a price war in the run up to the festive season - and are hoping to attract lucrative Christmas shoppers to their stores while drivers are filling-up at the same time.

Chains Asda and Tesco yesterday announced they were cutting pump prices immediately at all their Northern Ireland outlets.

Although the price of oil on the world market rose slightly on foot of news the hijacking of a huge oil tanker off Somalia, Asda's announcement is the company's 10th consecutive drop in fuel prices and will apply to all of its seven forecourts here.

Yesterday's cut – to 90.9p per litre brings petrol prices to their lowest levels since April 2007.

The chain has also dropped its diesel price to 105.9p per litre and all other fuel retailers will now be under pressure to follow suit.

Tesco also cut the price of its unleaded fuel by 2p per litre and diesel by 1p per litre at all its outlets.

However, Asda claims its new prices are the lowest in the UK, with average pump prices reported last weekend at an average of 95.16p for unleaded.

In response, Tesco said yesterday that it will continue to run its promotion entitling customers who spend £50 or more a discount of a further 5p off every full litre of petrol or diesel, up to a maximum of 100 litres, until the end of the month.

Clubcard customers will also receive a further 1p saving - in points - for every £1 spent.

The company claimed this means its customers can buy unleaded petrol from as low as around 85p per litre.

See: British Hostages On Oil Tanker Named

(BMcC)

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