Fuel Prices UK
Whether the UK is in recession or not is a matter for statisticians to debate. Certainly when a retailer such as Tesco describes trading conditions in the UK as being the most challenging in a generation, you know that times are hard. Strange then that the company continues to post profits for the 26 weeks to 27 August of £1.9bn, up 12.1% on a year earlier. Group sales also rose 8.8% to £35.5bn, but like-for-like UK sales excluding VAT and petrol fell 0.5%.
Like other supermarket retailers, Tesco are actually making money out of petrol sales. And this in an unltra-competative trading environment which saw sales at non-supermarket retailers drop by 11.8%.
Record fuel prices have squeezed household incomes to the point that people are losing mobility as a result. This according to Edmund King, President of the AA.
It seems that the British consumer will not continue to pay through the nose for fuel forever. Another consequence is that the treasury has lost out on nearly £1 billion in tax revenue during the period.
The question is surely, what do we do if we can’t drive our cars?