Chancellor Rachel Reeves has criticised Tesco and Sainsbury's for their pricing strategies, accusing them of failing to pass on savings to consumers. Her comments come amid a new petrol price war sparked by Asda, which announced a 2p per litre cut at the pumps.
Tesco and Sainsbury's quickly matched Asda's pledge, reducing petrol and diesel by up to 2p per litre. However, Reeves argued that the reductions are insufficient and that supermarkets should do more to help households struggling with high living costs.
The price cuts offer some relief for drivers, who have seen average petrol prices rise to £1.31 per litre, up from £1.29 in May. The cost of filling up has nearly doubled in a decade, compared to around 80p per litre in July 2004.
RAC spokesman Simon Williams welcomed the cuts, noting that falling wholesale prices due to a stronger pound and reduced global tensions have allowed retailers to lower prices. However, the AA warned of a 'postcode lottery', with some areas seeing slower price reductions.
Asda's Petrol Director Andy Peake said the move puts 'much needed cash back in their pockets as the summer holidays begin.' Tesco's fuel director Peter Cattell highlighted Clubcard savings, while Sainsbury's head of fuel Avishai Moor hoped the cut would be welcomed by drivers.
