- Supermarkets cut diesel prices by 2p a litre
- It’s now cheaper to fill up a diesel car verses petrol
- The RAC believes it could stay like this for some time
Following the announcement that Morrisons has reduced its diesel prices by 2p a litre, Asda and Tesco have also followed suit and now many drivers heading to supermarket fuel forecourts will find diesel prices cheaper than petrol - a situation not seen since 2001.
Morrisons predicts diesel prices will dip below those of unleaded petrol at most of its 336-strong petrol station stable. Asda-bound motorists will now pay a maximum of 112.7p a litre for diesel while Tesco introduced reduced prices from 1pm on Monday.
Simon Williams, RAC fuel spokesman said: "We are now well on the way to seeing a UK fuel price flip - where the average price of diesel is, quite rightly, cheaper than unleaded at the pumps.”
RAC Fuel Watch records show diesel was last cheaper than petrol 15 years ago on July 17, 2001.
This is great news for those company car drivers who pay for their own fuel for personal mileage, plus if you currently use AFR rates to reclaim business fuel, there could be savings made here too. To find out more about making money from fuel claims click here.
Mr Williams added: "With the price of crude oil standing at 56.50 dollars (£36.23) and the pound relatively strong against the US dollar - the fuel trading currency - there is scope for further price cuts of up to 4p per litre off diesel over the next fortnight, and unleaded may even benefit from a slight reduction too due to the continued oversupply of oil.
"Drivers of unleaded petrol vehicles should not feel short-changed - what we are seeing is the diesel pump price coming down to a level closer to what it should be due to the effects of greater refining capacity in the Middle East.”
To find out more about if petrol or diesel is the right choice for your next company car – check out some of our articles below.