Fuel prices cut below £1 per litre at Tesco and Asda as petrol station price war begins

Fuel prices cut below £1 per litre at Tesco and Asda as petrol station price war begins

Fuel prices have been cut at Tesco and Asda after a crash in demand has forced prices to costs not seen in over a decade. Asda has followed Morrisons by identically matching their petrol and diesel costs to fall below the historic £1 per litre mark.

Petrol prices at the two retailers are now 99.7p per litre nationally with diesel costs also down to 104.7p per litre.

Tesco has also slashed prices, with bosses cutting petrol costs to less than £1 per litre in line with their rival chains.

However, Tesco kept prices slightly higher with petrol selling for 99.9p per litre and diesel at 105.9p per litre.

Tesco has the largest petrol station network in the UK with more than 500 positioned across the nation.

READ MORE: Morrisons becomes first to axe fuel prices below £1 per litre

He claimed there were “some early indications” wholesale petrol prices may have started to rise as global oil demand begins to build.

Traditionally, supermarkets follow each other’s petrol pricing decisions to avoid losing customers to rival brands.

Back in March, both Asda and Morriosons decided to drop petrol prices by 12p per litre in a stunning move.

The falls were described by Morrisons as one of the “biggest fuel price reductions in recent times” as costs tumbled across the two chains.

The move had a dramatic effect on the UK’s national petrol price averages which fell by around 7p per litre in one week.

The latest move by forecourts is expected to further reduce the average cost even further over the next couple of weeks.

RAC Fuel Watch predicts prices across petrol, diesel and super unleaded are “very likely to come down”.

Government data shows petrol prices have dropped for 15 consecutive weeks with costs falling by a total of 20p per litre.

Highs of 127.33p per litre were recorded at the end of January before costs began to tumble as global oil demand fell.

Between February and March, petrol was falling by around 2p per litre every week but the size of reductions has started to slow.

This week, petrol process were down 0.21p per litre on last week as costs dropped to 107.45p on average.

Diesel costs have also plummeted with prices dropping from 132.88 in January to a current average of 114.83p per litre.

Figures from the Department for Transport have revealed filling up a 55 litre car is £10 cheaper today than it was just four months ago.

Published at Wed, 13 May 2020 06:38:00 +0000