Supermarkets cut petrol prices
The cost of petrol is being cut at the pump as supermarkets enter a pricing war to try to offer customers competitive prices.
Both Morrisons and Asda have this week reduced the price of unleaded by 2p a litre and diesel by 1p. Meanwhile, Tesco has also cut the price of unleaded by 1p a litre and is offering customers who sign up for its credit card before 2 September £5 off their next fuel purchase when spending at least £20.
Cheryl Kuczynski, spokesperson for Sainsbury's, was unable to comment on if and when the retailer would reduce its petrol prices but said: "We know that high fuel prices are having a big impact on household budgets.
"We are doing everything we can to help our customers to save money and along with the promotions we run in our stores, competitive fuel prices and fuel promotions are a great way for us to help shoppers to meet their weekly budgets."
Leading the way
On a brighter note for motorists, Julian Bailey, spokesperson for Morrisons, says: "If prices do go down further we will be one of the first supermarkets to pass these costs onto consumers."
The price of Brent crude has fallen below $100 this week for the first time in six weeks, in response to growing concern about economic growth in the US after Standard & Poor's shocked the world by slashing the superpower's prized AAA rating.
Paul Watters, spokesperson for the AA, says petrol prices need to go down further in reaction to falling oil and wholesale prices around the world but believes there has only been a "miniscule" reduction in the cost of petrol so far and customers should expect prices to be reduced further.
"The price of oil has dropped but this has not properly filtered through the customer yet. The supermarkets will lead the pack with price cuts and smaller petrol stations will have to follow suit," he adds.
Used by the holder to buy goods and services, credit cards also have a monthly or annual spending limit, which may be raised or lowered depending on the creditworthiness of the cardholder. But unlike charge cards, borrowers aren’t forced to pay the balance off in full every month and, as long as they make a stated minimum payment, can carry a balance from one month to the next, generating compound interest. As the issuing company is effectively giving you a short-term loan, most credit cards have variable and relatively high interest rates. Allowing the interest to compound for too long may result in dire financial straits.