Diesel prices drop to below £1 per litre

A general view of petrol pumps at a Shell petrol station
Diesel prices have dropped below £1 a litre in a move that will be welcomed by Britain's 11 million diesel drivers.

Although drivers of petrol cars have been filling their cars with fuel costing sub- £1 a litre since before Christmas, diesel prices have remained considerably higher.
But supermarket chain Morrisons announced that it had cut the price of diesel to 99.7p a litre, while rivals Asda and Tesco soon followed suit.

With the price of Brent crude oil at below $40 per barrel, many argued that the wholesale savings of a lower crude oil price had not been passed on to drivers.

RAC Fuel Watch spokesman Pete Williams said: "The wholesale price of diesel has been around 2p cheaper than the wholesale price of petrol since a couple of weeks before Christmas so we should have seen these cuts earlier and that is what the RAC has been calling for.

"It will also benefit UK business which runs on diesel and should be a further stimulus to the economy.

"Saudi Arabia has also reiterated its intention not to cut oil production so the world will continue to be awash with oil as demand is also down, suggesting that sustained lower petrol and diesel prices are going to be around for much of 2016."

Bryan Burger, petrol retailer director at Morrisons, told The Guardian: "If oil prices continue to fall then we remain ready to cut the price of diesel and unleaded."
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