Petrol station cuts price to 99p

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Published: Sunday 11th January 2015 by The News Editor

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A service station is believed to have become the first in the UK to have slashed petrol prices below the £1-a-litre mark.

It is reported the Harvest Energy service station in Birmingham cut the price of unleaded to just 99.7p over the weekend, in a move welcomed by motoring organisations.

The RAC said it was the lowest such price it was aware of anywhere in the UK, and marked the first time since 2009 that the cost of filling up has been so cheap.

It welcomed the move as “more good news” for drivers in the area, predicting other retailers could follow suit.

The price of diesel at the site in Alcester Road South is 109.7p.

Owner Velautham Sarveswaran reportedly put his latest price cut down to “a great deal with his supplier” adding he was happy to give drivers “a great feeling”.

Only last month, there were long queues at another of the three Midlands petrol stations the businessman owns, when he cut the price at his petrol pumps to 109.7p a litre.

Mr Sarveswaran told the Birmingham Mail: “It’s a great feeling for me to be able to give cheap prices to my customers, I like making them happy.”

RAC fuel spokesman Simon Williams said: “We have been expecting to see the price of petrol come down to £1 per litre, or lower, for some time thanks to the decline in global oil price and retailers willing to make cuts at the pump on an almost weekly basis.

“While the average is around the 109p mark, we have seen a number of retailers going as low as 104p in recent days, but 99p per litre is the lowest we’re aware of and it is hard to see how they can be making a profit as the cost of wholesale fuel needs to come down at the same time.

“However this is of course more good news for motorists in that area who will benefit from the kind of prices not seen for more than five years.

“It is usually the supermarkets that lead the way on price cuts this deep, so perhaps this will encourage them to make a similar move, but our feeling is it may be a while yet before others follow suit and go below a £1 per litre, although it may well happen over the next few weeks.”

Published: Sunday 11th January 2015 by The News Editor

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