The big four supermarkets, which together retail almost half the fuel sold in Britain, have taken the price of diesel below 110p a litre at some locations.
What’s more, the RAC’s Simon Williams reckons that if the wholesale price of oil remains low (it’s currently below $50 a barrel), “we could even have a chance of seeing £1 a litre diesel”.
Supermarket fuel price cuts: in detail
Tesco is Britain’s biggest fuel retailer and last week announced it was cutting the price of diesel by 2p a litre, and unleaded by 1p a litre.
Sainsbury’s and then Asda followed suit with identical price cuts – but Asda also employs a nationwide fuel price cap, meaning prices are the same across the country: the other supermarkets vary according to region.
Asda thus guarantees motorists will pay no more than 108.7p per litre of diesel, and 111.7p for a litre of unleaded.
Morrisons has also just announced a big 4p a litre cut in the price of diesel, and up to 1p a litre off unleaded.
It says average prices across the UK will now be 107p a litre for diesel and 112p a litre for unleaded.