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Supermarkets cut petrol prices just as oil cartel votes to CUT production by 1.5m barrels per day to boost flagging value

UK Daily Mail [1]
Friday, Oct 24, 2008

Supermarkets slashed petrol prices to 94.9p per litre today as it was revealed that greedy oil producer nations planned to cut productio in a bid to prop up the value of oil.

Asda and Sainsbury sparked a new price war when they announced they were slashing petrol prices to as low as 94.9p per litre.

But the move was immediately undermined when it was revealed that Opec had agreed to cut production by 1.5 million barrels per day.

The oil cartel, which is made up of the 12 biggest oil producing nations, approved the reduction after an emergency meeting in Vienna.

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Opec members are desperate to prop up oil prices after a dramatci slide which has seen it drop by more than 50 per cent since its July high point of $147 per barrel.

  • A d v e r t i s e m e n t

A $2 increase in the price of petrol adds roughly a penny to the pump price, so motorists could face a five pence a litre rise by Christmas, experts have warned.

The move comes just as Britain’s beleaguered motorists were set to enjoy their first major fuel price cut in months.

Asda will charge 94.9p per litre of petrol and 107.9p for diesel from tomorrow morning and will freeze the new prices at all of its 172 forecourts for 10 days, regardless of changes in the price of crude oil.

Full article here [1]