Diesel cheaper than petrol for first time in over ten years

Diesel prices have dropped below that of petrol after price cuts announced by major UK supermarkets.

Morrisons, Tesco, Asda and Sainsbury’s stores have dropped diesel prices below that of petrol, which, according to analysis by Experian Catalyst, is the first time this has happened since 2001.

The drop in price comes due to increased supply form refineries. One consequence of the price drop could be a resurgence of diesel cars, which have recently seen competition from more fuel efficient petrol engines.

Andy Peake, Asda's senior director for petrol, said: "Asda cutting another 2ppl on diesel is great news for our drivers, meaning they will pay no more than 112.7ppl at any Asda forecourt. Every single one of our customers knows the maximum price they will pay at the pump regardless of where they live."

RAC fuel spokesman Simon Williams said: "With the price of crude oil standing at $56.50 and the pound relatively strong against the US dollar... 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."

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