Supermarket chains Morrisons Asda, Tesco and Sainsburys have all cut diesel and petrol prices to below GBP1 a litre , the lowest fuel prices in the UK since 2009.
The latest drop in forecourt prices is a result of a further fall in oil prices, which are reportedly at an 11 year low, with UK Brent crude oil currently trading at just below GBP26 per barrel, a decrease of 35% over the year.
Approximately 75% of UK fuel prices go to the government in duty and VAT, while the rest is made up of refinery costs, distribution and the fuel retailers’ profit margins.
Motoring groups are said to be raising concerns as to why these savings were not passed on to customers earlier.
Director of the RAC Foundation, Steve Gooding, was quoted as saying: “The wholesale price of diesel has been below that of petrol since early December, yet the story at the pumps has been the opposite – with diesel GBP0.03 or GBP0.04 a litre higher throughout that period.”
According to RAC Fuel Watch, diesel prices could fall even further. Its spokesman Pete Williams suggests that pump prices of GBP0.90 per litre “are not far-fetched” in the coming months.