Moneysupermarket.com: Government should follow supermarket fuel price cuts

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Moneysupermarket.com: Government should follow supermarket fuel price cuts

The government should slash fuel tax in the wake of the supermarket fuel price war, moneysupermarket.com has said.

Spokesperson for the comparison website, Tim Newhouse, said that as supermarkets cut their petrol profits "to the bare bones...hopefully the Treasury will see fit to do likewise".

He noted that despite smaller profits on fuel, supermarkets are also trying to use the cuts as marketing to get customers to spend inside their stores.

Asda and Morrison's have made cuts of up to 3p and 4p a litre respectively, with Sainsbury's launching a promotion to reduce costs by 5p a litre if customers spend £50 or more in its stores.

Price comparison site uSwitch.com said the price war is a "welcome relief" to motorists but noted that as supermarkets are a "small proportion" of petrol suppliers, consumers "could find themselves driving further to make these savings".

It expressed a hope for large fuel companies to follow suit.
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