Plunging prices at the pumps have failed to arrest the slide in petrol purchasing. Petrol sales in October 2014 fell when compared with October 2013 despite pump prices falling more than 8p a litre over the 12-month period, Government figures highlighted today by the AA showed. The statistics also showed that petrol sales for the first 10 months of this year have fallen 20% compared with the same period five years ago.
Supermarkets have reacted to plunging world oil prices by cutting the cost of fuel to motorists. First, Asda announced it was knocking 2p a litre off its petrol and diesel from tomorrow. Then Tesco said it was cutting its petrol and diesel by 2p a litre.
Petrol firms and supermarkets will be pressed by the Government to pass on the benefit of falling oil prices to customers filling up at the pumps. Treasury Chief Secretary Danny Alexander will demand an assurance from fuel companies and distributors that they are doing all they can to pass on the price cuts to motorists. Mr Alexander will use a speech in Aberdeen to warn people would "rightly be angry" if they felt prices were not coming down as much as they should.