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Supermarkets cut diesel prices


Supermarkets have now cute diesel prices to below £1 a litre. As a result of the falling in oil price, last Sunday Morrisons cut there diesel to below £1 a litre and quickly following were Asda, Tesco and Sainsbury’s. It is said that oil price is the lowest it has been for over 11 years in the UK.

More miles were driven in the UK on diesel rather than on petrol. Morrisons, Asda and Tesco are charging 99.7p per litre of diesel where as Sainsbury’s is charging 99.9p per litre.  A spokesman for Asda explained that they wanted to pass on the continuing fall in the price of crude to there customers as soon as possible, they have 277 filling stations and believe they were the first to cut the price of petrol back in November.  Whereas Sainsbury’s said they would also reduce there prices but by not quite as much as the others but just enough to keep competitive.

The price of the UK fuel mostly goes to the VAT and treasury in duty and only a small section goes to refinery costs, distribution etc. This leaves less of a link between the price of the commodity and the finished product.


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