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 …