Petrol pump

Supermarket fuel price war as big four cut petrol and diesel prices

Fuel price warMorrisons and Asda will cut fuel prices from today, in response to cuts by Tesco and Sainsbury’s last week – signalling the start of a new supermarket fuel price war in the UK.

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.