PUMP & DUMP
Supermarkets artificially hike petrol prices to offer big cuts
BRITAIN’S supermarkets are hiking fuel prices just before announcing cuts – so drivers think they are getting a bigger bargain, it is claimed.
Their filling stations regularly put up the price of a litre by around a penny then bring it down by 1p or 2p days later.
The “stage-managed” rises happen despite falling wholesale prices and amid a fierce forecourt price war.
A litre of unleaded petrol at Sainsbury’s in Tonbridge, Kent, rose 1p from 120.4p to 121.4p a litre on April 25 before falling 1.5p to 119.9p three days later.
But since mid-April the wholesale price fell nearly 6p a litre from 112.2p to 106.8p. And last night a fuel campaigner accused the retail giants of profiteering.
FairFuelUK founder Howard Cox said: “Drivers are oblivious to being hoodwinked by eye-catching price cuts at supermarkets after very recent stagemanaged fuel hikes. Hard-working fami- lies and small businesses are being ripped off at the pumps yet again.
“We urge the Chancellor to consider the murky world of pump pricing.”
Experts at PetrolPrices.com backed the claim. A three-month survey of 100 forecourts owned by Tesco, Sainsbury’s, Asda and Morrisons – plus retailers like Shell, Gulf and Esso – found a similar pattern of supermarkets hiking petrol and diesel prices before “making a larger perceived price reduction.” Morrisons in Boroughbridge, North Yorkshire, put up a litre of unleaded 1p in mid-April then dropped it 5p by May.
At Tesco in Cannock, Staffs, it rose 1p a litre in mid-April and fell 2p in May and 7p weeks later.
At Asda in Walsgrave, Warwicks, it went up 2p on April 22 then was cut 3p a litre in early May. PetrolPrices.com boss Jason Lloyd said: “The data doesn’t lie. It showed quite clearly that supermarkets seem to display the same behaviour – prices go up slightly before falling much more.
“The question is why, when the cost of wholesale fuel has been falling dramatically over the last few months?” But he said supermarkets are still cheaper than rivals as its prices aim to drive people into stores rather than profit from fuel.
The British Retail Consortium, which represents supermarkets, said: “Prices are predominantly driven by the world price of oil.”
Asda said: “We consistently offer drivers the lowest fuel prices nationwide. We always aim to be the first retailer to drop prices and the last to put them up.”
Why put up prices when the cost of wholesale fuel is falling?
BOSS OF PETROLPRICES.COM