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Fuel price war means diesel could drop to £1 per litre

A supermarket price war combined with low oil barrel prices means good news for some motorists

Siobhan Fenton
Saturday 08 August 2015 11:18 EDT
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The AA had said fuel retailers were 'plundering ordinary diesel car drivers to the tune of 4p to 6p a litre'
The AA had said fuel retailers were 'plundering ordinary diesel car drivers to the tune of 4p to 6p a litre' (Getty Images)

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A supermarket petrol price war could be good news for motorists. Experts believe that the price of diesel could drop to as little as £1 per litre amid growing competition.

Tesco announced yesterday that it will slash the cost of diesel for customers by 2p per litre and unleaded petrol by 1p. The news has sparked similar pledges by Sainsbury’s and Asda who have now also vowed to introduce price cuts.

The price of oil has dipped recently to below $50 per barrel, sparking hope that companies could pass on the savings to customers.

RAC fuel spokesperson Simon Williams told Sky News: “July was a bumper month for diesel vehicle drivers with the average price falling by 5p a litre, saving £3 on a fill-up.

“With oil prices just under the 50 dollars a barrel mark, there’s every chance even more cuts are just around the corner.

“And, if oil stays low and wholesale diesel remains abundant, we could even have a chance of seeing £1 a litre diesel.”

Last month, diesel became cheaper than petrol for the first time in 15 years.

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