You are here: Home - Household Bills - News -

The AA criticises supermarket fuel offers

0
Written by: Paloma Kubiak
04/12/2019
The AA has attacked fuel discounts offered by supermarkets, saying they discriminate against some customers.

Morrisons, Sainsbury’s and Tesco all regularly offer shoppers money off a litre of fuel in exchange for spending at least £40 on groceries.

However, according to research by the AA, these deals tend to follow cuts to the wholesale price of fuel, rather than the supermarkets passing on a straight price reduction at the pumps.

Motorists also think the vouchers are just another way to get them spending more in-store or online, the study said.

A poll of 18,000 AA members revealed 58 per cent of people consider money-off fuel offers an “underhand way” of getting shoppers to spend more money at the brand. And 38 per cent said they felt manipulated by fuel offers tied to how much they spend at supermarkets.

The motoring group criticised the deals for discriminating against less well-off consumers, with the poll revealing 38 per cent of young drivers can’t afford to spend £40 in order to get 5p off a litre of fuel.

Almost three quarters of people agreed that the government should set a maximum timescale for fuel retailers to pass on cost savings when the wholesale price drops.

Average fuel price saving with vouchers

For an average 55-litre family car, the best possible saving with a ‘spend £60 get 10p off a litre’ is £5.50 off a total spend of £127.93 based on supermarket average petrol prices of 123.5p a litre.

With a ‘spend £40 get 5p off a litre’, The AA calculated that drivers would save £2.75 off a total spend of £107.93 – a 2.5% saving.

Luke Bosdet of The AA said: “A large number of shoppers with cars welcome these vouchers. And, with one in 10 tempted to buy more to qualify, they are a powerful marketing tool.

“However, they discriminate against lower-spending and less well-off consumers. They also delay price competition at the pumps and reinforce drivers’ suspicions that they are being played – to the extent that 73% want some form of price regulation.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Easyjet set to return to FTSE 100

Easyjet is set to return to the FTSE 100 in the final reshuffle of the London index this year.

Close