Diesel pump prices cut to less than £1 a litre

Diesel prices reach lowest in seven years as four supermarkets cut the cost of diesel to below £1 a litre.

Four of the UK’s supermarkets have dropped their pump prices, with Morrisons, Asda and Tesco charging 99.7p per litre and Sainsbury’ charging 99.9p. This makes diesel the lowest price for seven years.

Morrisons was the first to drop the price of fuel, followed by Asda who reduced their price by 3p. Tesco then matched the prices for fuel, followed by Sainsbury’s who said it would also be offering New Year savings.

Petrol also fell below £1 a litre over the Christmas period, which led to retailers being criticised for not passing on cheaper wholesale costs to diesel drivers.

The RAC have announced that Saudi Arabia confirmed its commitment to oil production, which could see an oversupply, keeping fuel prices under £1 for the early part of the year, with the prediction that prices may fall by another 10p.

A spokesman for the RAC said: “Diesel drivers will clearly welcome this move by the big supermarkets, although it would be fair to say it is overdue.

“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.”

In comparison to the highpoint reached in 2012, Diesel drivers filling up at big supermarkets will be paying £20 less to fill up a 50 litre fuel tank.

Average fuel prices remain higher, according to PetrolPrices.com, at 102.69p for petrol and 105.99p for diesel.

Freight Transport Association (FTA) deputy chief executive James Hookham said: “We need to see the wider fuel market become more responsive to ever lower oil prices.  Today’s announcement by leading supermarkets is good news for commercial vehicle operators.”

The FTA have campaigned for the reduction of fuel prices, also backing FairFuelUK, a campaign that has been brought forward by the logistics industry. Since it was formed in 2011, it has helped to secure a better deal for hauliers and motorists.

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