Diesel at its lowest price for 7 years
4th January, 2016

Four supermarkets have cut the cost of diesel to below £1 a litre – its lowest price for seven years.

Morrisons was first to drop its pump prices over the weekend, while Asda, Tesco and Sainsburys followed suit today (Monday). Morrisons, Asda and Tesco are now charging 99.7p per litre of diesel. Sainsburys is charging 99.9p.

The price of petrol, typically cheaper than diesel, fell below £1 a litre in the weeks before Christmas, but retailers were criticised for not passing on cheaper wholesale costs to diesel drivers.

Last month, supermarkets were urged not to take advantage of motorists by charging more for diesel than they should.

With the wholesale price of diesel 3p a litre cheaper than unleaded, the RAC said retailers were in danger of being seen to take the country’s diesel drivers for a ride as there was no reason diesel should be priced higher than petrol.

"Diesel drivers will clearly welcome this move by the big supermarkets, although it would be fair to say it is overdue,” a spokesman for the RAC told the BBC.  "We hope that other supermarkets and the cheaper fuel retailers will follow suit and do the right thing for motorists. This should reduce the average price of diesel for motorists everywhere who will benefit from the low price of crude oil."

Oil is at its lowest for 11 years. UK Brent Crude oil is currently trading at just below $38 (£26) per barrel, having lost 35% over the year.
Diesel drivers filling up at one of the big four supermarkets will now pay £20 less to fill up a 50 litre fuel tank compared with the high point reached in 2012.