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Gloucestershire Business News

Supermarkets cut petrol prices to below £1 a litre

Three of the UK's big four supermarkets have cut petrol prices, following the collapse in the global oil market.

Morrisons, Asda and Tesco all announced that the cost of unleaded petrol would fall to less than £1 a litre, for the first time in four years. The move follows a string of fuel price cuts that started in March, as reported by The Guardian.

Morrisons announced yesterday (11th May) that motorists using its filling stations would pay a maximum of 99.7p a litre for petrol and 104.7p a litre for diesel, saving an average of £4.50 on a 50-litre tank of petrol.

Asda then cut its prices to the same level, saying it would "support the nation during these unprecedented times" and lower the cost for people returning to work.

Tesco, the UK's biggest petrol retailer, today cut the cost of unleaded petrol to no more than 99.9p a litre and 105.9p for diesel.

Global oil prices have plunged since the start of the year, due in part to a fall in demand for fuel due to the coronavirus crisis.

The RAC motoring group said the new supermarket prices are a fair reflection of what the retailers are currently paying to buy the fuel in. But the average UK price for fuel still stands at at 108.74p per litre for petrol and 114.26p for diesel and the supermarket price cuts could put further pressure on small independent fuel retailers, already struggling for survival as a result of coronavirus.

However, the low prices may not last for long, with oil market prices set to rise in the second half of the year as the US and Chinese economies reopen.

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