Cost of diesel falls below petrol for first time since 2001

Following supermarket price cuts on the forecourts, the price of diesel is cheaper than petrol for the first time in over a decade.

According to Experian Catalyst date, the cost of diesel in 2001 was an of 77.92 pence per litre, with petrol costing 77.94 pence for the same amount.

The average cost of diesel is now 118.98 pence per litre, with unleaded fuel costing 117.24p per litre. The wholesale diesel has been lower than petrol since the end of May 2015, and some filling stations are now beginning to offer lower prices for diesel than petrol.

The RAC welcomed the decision by the leading supermarkets to cut the price of diesel and hoped to see more fuel retailers following this lead, allowing more motorists across the country the opportunity to benefit from the price drop.

Simon Williams, RAC fuel spokesman said: “RAC Fuel Watch records show diesel was last cheaper than petrol 15 years ago on 17 July 2001, so these price cuts are great news for the nation’s 10.7 million diesel car drivers.

“Fifteen years ago when this happened last, diesel was cheaper than petrol for two and a half months, but with a new supply of diesel being produced from Saudi Arabia, there is real chance that we may see the diesel price staying below petrol for some considerable time.

“With the price of crude oil standing at $56.50 and the pound relatively strong against the US dollar – the fuel trading currency – there is scope for further price cuts of up to 4p per litre off diesel over the next fortnight, and unleaded may even benefit from a slight reduction too due to the continued oversupply of oil.

“Drivers of unleaded petrol vehicles should not feel short changed – what we are seeing is the diesel pump price coming down to a level closer to what it should be due to the effects of greater refining capacity in the Middle East.

“However, if retailers are buying unleaded and diesel in for a similar price, it is right that they are sold on to motorists at a similar price, or cheaper if the diesel wholesale price is lower.”

A spokesperson for the AA commented: “Although the supermarkets’ decision to lower the price of diesel below petrol’s is very welcome, particularly for tradesmen who haven’t been able to get fuel card discounts, this more realistic pricing has been too long in coming. The AA highlighted the 4 pence to 6 pence over-charging for diesel, compared to petrol, in April and it has been three-and-a-half months of the 2015 ‘Great British diesel rip-off’.

“Even over the weekend, petrol averaged 117.10 pence per litre while diesel was 118.33 pence. This contrasts with diesel averaging five pence a litre cheaper than petrol at wholesale level in the week before last.

“The ordinary diesel driver has been blind to this over-charging simply because there isn’t the fuel price transparency that is normal in Australia, South East Asia and across the USA. It is time the Government resurrected the 2012 attempt to get the fuel industry to show the track of oil price compared to wholesale cost versus pump price, taking into account the exchange rate. In short, a fair price.”

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