The price of diesel is set to plummet in yet another fight on the forecourts between the big supermarkets, with prices reaching below £1 for the first time in six years.
In the wake of Christmas and the New Year, the superstores will once again be attempting to match each other for prices, as the falling price of oil is allowing them to break through the £1 diesel boundary, just as they did for petrol prices pre-Christmas.
Morrisons announced on Sunday that it had cut its diesel prices to 99.7p per litre, and Asda and Tesco are set to try to match these prices.
The RAC commented that the move has been a long time in coming, having claimed for a while that the savings on the cost of a barrel of oil were not being passed on to drivers. The price of a barrel of Brent crude oil has apparently fallen below $40.
Pete Williams, the RAC Fuel Watch spokesman, 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.”
Due to a slack in demand alongside continued oil production in Saudi Arabia, it is hoped that these low prices will remain and be around for much of 2016.
