Supermarkets in petrol price war again

Asda, Morrisons, Tesco and Sainsbury's have all sliced up to 2p a litre off the price of petrol.
Four major spermarkets have entered into another petrol price war.
Asda led the way by announcing it would cut petrol prices by 2p a litre, meaning customers there would pay no more than 133.7p at the pumps.
Morrisons, Sainsbury’s and Tesco have now followed suit with cuts of up to 2p to their own petrol prices.
The price cuts follow falls in the wholesale cost of petrol. Sadly, there’s not been a similar fall in diesel wholesale costs so prices won’t be changing.
If you want to make sure you’re paying as little as possible for your petrol, make sure you read How to find the cheapest diesel and petrol prices.
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It seems that Asda is the prime mover here. My nearest one is 8 miles away and the nearby Tesco has followed them down in price although not matched them. My nearby Tesco and Morrison have dropped 1p each but are still 3p more than Asda. No, I don't drive 8 miles out of my way to fill up, but if I'm going that way I do call in for fuel. I was impressed by the fact that Asda advertised their prices in the national press. So much for local hot spots. I hope that the north of Scotland is seeing this benefit. As a point of correction Diesel prices have fallen too.
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Electric Blue. I work in the Automotive industry in engine development, so I know a lot about engines.... Yes engines can be made for much less than £2000. That isn't the point. The point is about development, application, packaging etc. Engines are not superceded in 5 years. A car production run may be 6-7 years or so, with a mid life facelift, but engine platforms can run for much longer. They also need to run for much longer to offset the huge development costs, and make unit costs affordable. It would be impossible to dev a replacement power unit that could fit a whole host of different vehicles, power outputs, sizes, packaging, thermodynamic requirements etc. Yes people can swap engines from one platform to another, but they choose engines that have already been developed and are instrinsically suitable. Fitting a different engine into a Range Rover with it's massive engine bay is easy. Now try developing engines for 10, even 100 of different vehicles of all shapes and sizes and it is a wholely different ballgame. It would not be even remotely possible to do it affordably. The aerospace industry is not relevant. Neither is the military. Yes they can swap engines, like for like, very quickly but they pay a massive premium for this. Also some engines (eg tank engines) can run on just about any fuel for operational reasons - but again they pay a massive cost and performance penalty. I already agreed that the scrappage scheme was daft, but re-powering older cars on a large scale, as you suggest, is also equally daft.
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I won't be looking at Morrisons in the same way now you've branded them a spermarket - must be your mind checking the prices amongst all those nozzles and filler tubes.
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27 October 2012