Diesel slashed to less than £1 a litre

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DRIVERS will be able to fill up on diesel for less than £1 a litre after four supermarket giants slashed their fuel prices.

Asda, Tesco and Sainsbury’s will sell the fuel for less than the symbolic level from today (Monday), following Morrisons’ price cut on Sunday.

This latest announcement shows that we’re committed to being the driving force behind lowering fuel prices

Andy Peake

However,motoring research charity the RAC Foundation asked why bargains had not been seen sooner and more widely.

Andy Peake, Asda’s senior petrol director, said: “This latest announcement shows that we’re committed to being the driving force behind lowering fuel prices.”

Tesco said it would also be dropping the price of diesel to 99.7ppl at all of its 500 filling stations.

Fuel director Peter Cattell said: “We know our customers really value low fuel prices and having diesel for 99.7p a litre will give our customers a big helping hand for the New Year. This reduction will mean millions of customers save money by shopping at Tesco.”

Sainsbury’s also said its diesel would cost 99.9 pence per litre across its 301 forecourts, adding its petrol customers had been filling up for under £1 since December 12.

Head of fuel Avishai Moor said: “This is great news for diesel drivers and kicks off 2016 on a really positive note. We hope that this will help motorists to balance their budgets in the quieter period after Christmas and the New Year.”

Steve Gooding, director of the RAC Foundation, said: “It seems the January sales are extending beyond the high street to garage forecourts.

“The question is, why haven’t we seen these bargains sooner and more widely? After all, the wholesale price of diesel has been below that of petrol since early December, yet the story at the pumps has been the opposite with diesel 3 or 4p a litre higher throughout that period,” he said.

“More generally, low pump prices are a product of a barrel of oil changing hands for less than a third of the price it did 18 months ago.”

Unleaded fell below £1 per litre at many supermarkets last month for the first time since 2009, excluding promotions.

The RAC said the price cut was good news for drivers, particularly after the expense of the festive season, but it was long overdue.

RAC Fuel Watch spokesman Pete Williams said: “Diesel drivers will clearly welcome this move by the big supermarkets, although it would be fair to say it has been slow in coming.