Asda starts fuel price war

! This post hasn't been updated in over a year. A lot can change in a year including my opinion and the amount of naughty words I use. There's a good chance that there's something in what's written below that someone will find objectionable. That's fine, if I tried to please everybody all of the time then I'd be a Lib Dem (remember them?) and I'm certainly not one of those. The point is, I'm not the kind of person to try and alter history in case I said something in the past that someone can use against me in the future but just remember that the person I was then isn't the person I am now nor the person I'll be in a year's time.

Asda have dropped the price of their petrol and diesel to below a pound a litre, saying “There is no justification for any major retailer selling fuel above £1 per litre”.

Good for Asda, there is indeed no excuse for selling fuel about £1 per litre.  Oil prices have risen slightly in the last month but in the last week or so they have actually dropped.  The price of a barrel of oil is less than half what it was last year when the price of fuel went through the roof.

Asda has made a welcome gesture in reducing the price of its fuel to 99.9p/litre but it needs to go down more.  Much more.  In reality, there is no reason for the price of a litre of fuel to be more than about 70p/litre.  The fuel companies will still make eye-watering profits and the Treasury will still rake in billions of pounds of fuel tax.  More importantly, it will help bring the recession to an end by putting more money in our pockets which we can spend reinvigorating the economy.

Still, every little helps.  Or is that the other one …

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  1. wonderfulforhisagew (1 comments) says:

    Fuel duty is 54p per litre and then there is 15% VAT to be added. Your 70p per litre looks a bit optimistic I’d say.

  2. wonkotsane (1133 comments) says:

    Fuel duty and VAT are only a percentage of the price of the fuel at the pump so, even though fuel duty may be 54p a litre now, it wouldn’t be 54p a litre if fuel was cheaper. Half the price of fuel, or instance, and fuel duty would be 27p and VAT would still be 15% but it would be half in monetary terms what it is now.

  3. jameshigham (87 comments) says:

    Haven’t noticed it round our way.

  4. axel (1214 comments) says:

    hold on, let me take my socks off, so i can work this one out

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