£1 a litre diesel in prospect as Asda cuts price

Asda are lowering their fuel prices further. Picture: Ian Georgeson
Asda are lowering their fuel prices further. Picture: Ian Georgeson
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DRIVERS have could see diesel falling to £1 a litre as discount leader Asda announced its lowest price for five years.

The prediction from the RAC motoring group came as the ­supermarket said it would cut 2p a litre off diesel from today to reduce it to a maximum of 108.7p.

Asda has also taken 1p off petrol, which will cost no more than 111.7p – its lowest price for four months.

The Automobile Association (AA) expressed scepticism about the £1 claim, but said the Asda move would drag down prices at other filling stations near Asda’s 272 forecourts.

The RAC also said last December it was “optimistic” of petrol soon falling to £1 a litre, but that did not happen.

Diesel averaged 114.6p across the UK on Thursday, and petrol 115.9p, the AA said.

Asda is currently cheapest for both fuels in Edinburgh, Glasgow and Dundee, but is matched by Morrisons in Aberdeen, according to comparison website petrolprices.com.

RAC fuel spokesman Simon Williams said yesterday: “Returning to a diesel price last seen in 2010 is probably something the country’s 10.7 million diesel car owners never thought they would see.

“With oil prices just under the $50 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.”

However, AA spokesman Luke Bosdet said: “Oil needs to come down to around $40 a barrel before average pump prices near the £1 a litre mark.

“The reality is that, as summer wanes and autumn nears, with growing demand for heating oil the price of diesel will pick up again.

“The message to diesel drivers is to enjoy the lower prices and a differential that more fairly reflects the difference between the cost of petrol and diesel to the retailer.

“Asda has played a blinder in plunging their price of diesel way below what most people would have expected. However, the supermarket’s move is likely to drag other prices down locally, although towns away from Asda areas will lag badly behind those prices.”

Asda cut its diesel price 15 times between last September and January, bringing down the price from 129.7p to 110.7p. The price then crept back up to peak at 118p in June before another series of cuts from last month.

The supermarket reduced its petrol price from 126.7p last September to 103.7p in January, then increased it to reach 114p in June before cutting it again.