Supermarket chains are waging price wars by offering eye-catching discounts on petrol for customers who spend in their stores.
Following Asda’s petrol price cuts in November and Tesco’s fuel offer last month, supermarket chain Morrisons has raised the bar by offering a record 15p per litre discount off petrol for customers spending £60 in store.
Supermarkets clashed over the issue last year. In April 2011, Morrisons’ Fuel Britannia scheme offered 6p off a litre of petrol for customers spending over £40 in store. This was branded no more than a ‘gimmick’ by a disgruntled Asda, upset that its below-average fuel price longevity was being supplanted by a rival’s deal that required high levels of in-store spending.
But campaigners have little care about favouritism, it would appear. Having voiced their concerns at the soaring cost of fuel, they are preparing to take a stand early next month to demand lower fuel duty ahead of the budget. Oil prices forced the price of diesel to a record high last week, while unleaded petrol currently sits within reach of the record high reached in 2011.
Such is the concern about the rising cost of fuel, rival supermarkets are expected to offer competing deals to ensure that their market share of groceries and fuel is not lost.
The re-launched Fuel Britannia will offer fuel-discount vouchers to Morrisons customers spending £60 or more in-store between February 23rd and March 4th, and there will be a further week to redeem them at Morrisons petrol stations.
We know how tough it is for our customers. This deal will help them in these tough economic times. Nobody has ever knocked this much off a litre of fuel before. This will make a real difference for our customers.
Richard Lancaster, Marketing Director, Morrisons
If a typical family car holds 75 litres of fuel (which would currently cost some £107 to fill), the savings could total £11.25 per tank through Morrisons’ scheme. On a £60 grocery shop, this is effectively a cashback offering of up to 19% from the Northern based supermarket. On a weekly tank fill, this is the equivalent of saving £585 per year.
More reasons to shop at Morrisons? If rivals do not respond with a credible counter-offer, it seems highly likely that Morrisons will sweep the decks for a fortnight.