Total has become the latest petrol retailer to lower prices, a day after similar moves by BP and supermarkets Asda and Morrisons.

As the firms respond to the recent falls in oil prices, Total said it was cutting three pence off the cost of a litre of unleaded petrol and diesel.

Both Esso and Shell have also hinted that they may follow suit.

Total said it always aimed: “to pass on cost reductions to our customers wherever possible”.

Morrisons was first to cut its prices on Thursday, reducing the price of fuel across its 285 petrol stations by 3p a litre.

Asda and BP quickly followed with their own reductions.

Average petrol prices are now back below 110p a litre, while diesel is under 120p.

Back in July, UK fuel prices hit record highs on the back of crude oil also hitting all-time peaks.

Petrol prices touched 119.7p a litre and diesel went as high as 133.25p.

As oil has since fallen significantly from July’s highs, there has been criticism that the petrol retailers have not been quick enough to cut their prices.

News reported by The BBC

Discount supermarkets are seeing sales grow as cost-conscious consumers in the UK look to save cash, figures suggest.

Aldi, Lidl and Netto saw their combined market share rise to 6.1% – their best ever, while Iceland also snared more of the market, TNS Worldpanel said.

And there was a suggestion of customers turning away from more expensive shops.

Nielsen data showed Marks and Spencer’s share of grocery sales had fallen 2.1% in the four weeks to 8 August, while Waitrose’s market share grew by 0.4%.

MARKET SHARE OF UK SUPERMARKETS
Tesco: 31.6%
Asda: 17%
Sainsbury’s: 15.8%
Morrisons: 11.1%
Somerfield: 3.7%
Waitrose: 3.8%
Aldi: 3.0%
Lidl: 2.4%
Iceland: 1.7%
Netto: 0.7%
% sales of total grocers in 12 weeks to 12 August 2008
Source:TNS Worldpanel

Aldi and Lidl – which sell just one brand of most products – have run an aggressive expansion plan across the UK.

Aldi saw sales grow 19.8% during the 12 weeks to 12 August compared with the same period a year ago, TNS Worldpanel said, while Lidl was 12.3% up and Iceland added 14.4%.

Tesco and Sainsbury both saw slight falls in market share, down from 31.8% to 31.6% and 16.1% to 15.8% respectively.

Asda saw its share rise to 17% from 16.8%, while Morrisons edged up to 11.1% from 10.9%.

‘Disproportionate’ suffering

The data gave the “clearest picture yet that retailers with a clear price message are posting the strongest performances”, said the director of research at TNS Worldpanel, Ed Garner.

“It is worth noting that this growth is entirely driven by new stores and new shoppers – spend levels for existing shoppers remain unchanged and quite low compared with the top four”.

Meanwhile, retail analyst Nick Bubb said that the top-end food operators had suffered “disproportionately” in recent weeks as customers tried to make savings.

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UK drivers are set to benefit after a number of national supermarket chains and an oil company said they were cutting the price of fuel.

Asda said it was cutting the price of unleaded petrol and diesel by 3 pence per litre, while Morrisons said it had cut both prices by 4p per litre.

BP said petrol and diesel at the 310 stations where it controls prices had fallen by 2p a litre on average.

Tesco said it would cut prices by up to 4p, but its prices are set locally.

Sainsbury’s said it would look to match the prices of competitors nearby.

Fuel prices have risen in recent months as the price of crude oil has increased. Oil prices hit record levels above $147 a barrel in early July.

However, oil prices have dropped recently, to about $132 a barrel, resulting in a 6% fall in the wholesale price of petrol since mid-July, according to the AA.

Helping hand?

Asda’s price change came into effect on Tuesday, making unleaded petrol 113.9p per litre with diesel 128.9p at its 170 forecourts.

David Miles, Asda’s trading director, said: “We are seeing a more stable reduction in oil prices, allowing us to pass on the savings to customers.

“We urge other retailers to follow our lead at a time when customers need as much help as possible.”

Morrisons introduced the price change at its 285 petrol stations on Monday evening. It said it was “ensuring customers reap the benefit [of lower oil prices] by passing on the saving quickly, for cheaper prices at the pump”.

BP said pump prices at the 310 sites where it sets the price had fallen by an average of 2p per litre, and some stations had seen a reduction of 4p per litre.

“We don’t have a national pricing strategy. We set our prices on a site by site basis in response to the local market and crude oil,” said spokesman Mark Salt.

However, BP does not control pricing at around 950 stations that sell BP-branded fuel.

Discounts

Tesco said that it was cutting prices by up to 4p a litre, although it does not set petrol prices centrally.

A Tesco spokesman added that it had also been offering 5p off per litre to customers who spend at least £50 in store for the past month.

“The AA expects fuel suppliers to pass on, not pocket, the saving for the good of UK families, hauliers and the economy” Edmund King, AA

Sainsbury’s said its fuel promotion, which will also see it offer 5p off per litre when customers spend £50 or more in store, would start on Thursday 24 July and end on Thursday 7 August.

Hauliers welcomed the moves, which come a week after the government announced it was delaying a 2p a litre rise in fuel duty that had been due to come into force in October.

The AA said that wholesale petrol prices had fallen 6% since mid-July and it urged other fuel retailers to follow the supermarkets’ lead and cut petrol prices.

“The AA expects fuel suppliers to pass on, not pocket, the saving for the good of UK families, hauliers and the economy,” said AA president Edmund King.

“Should fuel suppliers and retailers appear to be dragging their feet we will seek to expose this.”

Ray Holloway, of the Petrol Retailers Association, said independent fuel retailers would be unlikely to respond immediately to the cuts.

“The supermarkets are moving the price in anticipation of further falls in the wholesale price, ” Mr Holloway said.

“Independents will pass on those falls in due course.”

News reported by The BBC

A supermarket price war has broken out with high street stores making huge cuts in the cost of groceries.

Bananas are going cheap Both Asda and Tesco have taken out a series of adverts in the national press promising lower prices in a bid to outflank their rivals.

The price war began with Asda unveiling a range of goods including sausages and bananas for sale over the weekend at 50p.

A spokesman for the supermarket said its budget brands were increasing in popularity.

He said: “Times are getting tough and people are feeling the pinch so we have reduced the price of these ten staple items over the weekend.

“It is going back to the basics like bread, eggs and butter and fruit and veg as well.”

Asda: ‘Shoppers feeling the pinch’The reductions will last until Sunday.

Tesco also declared a series of “inflation busting prices” with up to 50% off around 5,000 items.

A spokeswoman for the chain said they would announce another 3,000 price cuts next week.

She said: “We know times are tough and customers are tightening their belts so we will be keeping an eye on prices all year.”

The move follows the rising popularity of discount stores like Aldi and Lidl.

News reported by Sky News