Morrisons fuels petrol price war by going the extra mile with discount

THE rising cost of fuel has inspired Morrisons to become the latest supermarket to offer loss leader fuel discounts in a bid to tempt shoppers through its doors.

From Monday customers who spend more than 40 instore will qualify for 6p off every litre of petrol or diesel.

The offer, which runs for three weeks, is aimed at shoppers planning an Easter getaway.

Richard Lancaster, Morrisons marketing director, said: "With petrol prices at an all-time high and disposable income down 100 a month on last year, we want to provide our customers the best deal on the market."

"We know that over the Easter holidays and the royal wedding, motorists will want to travel further to visit friends and relatives, but will be put off by the cost of petrol. Our offer ensures that our customers can enjoy this time and worry less about the cost."

Research carried out by the IGD group found that 52 per cent of people would shop less frequently if petrol prices continue to rise, while 50 per cent said they would use shops nearer home in order to use their cars less.

Around 44 per cent of people said they would be tempted to shop more often in shops that gave discount vocuchers.

While 41 per cent of people said they would do more shopping in supermarkets with petrol stations, 31 per cent said they would do more of their shopping online to save on motoring costs.

Researchers said 47 per cent of people said they would not be cutting back on the amount they spent on petrol and groceries to cover higher motoring costs but would be cutting their spending in other areas,

The Morrisons offer will takes its unleaded petrol to an average 126.72p, beating its three largest rivals.

But a Sainsbury's spokeswoman said its discount vouchers would take the price of its unleaded to 126.85p per litre until 26 April, only marginally higher than Morrisons.

Co-op has been offering 5p off a litre across its garages until 8 May when motorists spend a minimum 30, but accurate figures on average fuel costs are not available as only a handful of the garages attached to its stores are Co-op-branded garages.

A recent report from Equifax showed the high cost of petrol at the pumps is now leading to more than two-thirds of consumers using their credit cards to pay for filling up their vehicles.

The rise in fuel costs has led to out-of-town shopping malls being hit by sales declines as consumers choose to shop local rather than incur the travel costs involved by driving to retail outlets on the edge of town.

With supermarket margins on petrol estimated to be in the low pennies per litre, the latest round of fuel discounts are loss-leaders, which is why the terms and conditions insist on shoppers spending minimum amounts in store before receiving their fuel discount vouchers.

MORRISONS

Until 8 May, spend 40 for 6p per litre discount

Average: 132.72p per litre

Discount: 126.72 per litre

To fill 50 litre tank

Without discount: 66.36

With discount: 63.36

Saving: 3

SAINSBURY'S

Until 26 April, spend 50 for 5p per litre discount

Average: 131.85p per litre

Discount: 126.85p per litre

To fill 50 litre tank

Without discount: 65.92

With discount: 63.42

Saving: 2.50

TESCO

Average: 132.5p per litre

To fill 50 litre tank: 66.25

ASDA

Average: 131.12p per litre

To fill 50 litre tank: 65.56

CO-OP

Until 8 May, spend 30 for

5p per litre discount