A number of supermarkets have dropped the price of diesel below petrol for the first time in over a decade. The last time diesel was cheaper than petrol was in 2001.
This follows a number of big chains announcing price cuts Morrisons cut the price of diesel by up to 2p per litre which was then followed by Tesco, Asda and Sainsbury’s making their own price cuts.
10 years ago exactly back in July 2001 diesel cost 77.92p per litre and petrol 77.94p for a litre. According to the supermarkets, pump prices are influenced by factors including the distance from oil terminals and refineries, so before you floor it to your nearest supermarket do be aware that not all diesel prices will be lower than petrol.
The changes in price may take a while to reach all competitors. Experian Catalyst said: “on Sunday UK average prices narrowed to 117.10 pence per litre for petrol and 118.33 pence for diesel”. The gap will more than likely continue to close over the weekend.
According to the United Kingdom Petroleum Industry Association and the RAC, Diesel is normally more expensive than petrol due to most recent investments in refineries in the UK has been for unleaded petrol production. However, an increase in diesel refineries outside the UK is apparently the main catalyst behind the price changes.
By James Fothergill