22nd January 2016
Asda has cut the price of a litre of diesel to just 97.7p in the latest round of cuts prompted by tumbling oil prices.
Chancellor George Osborne said the collapsing oil price is ‘a good thing’ for Britain, as a barrel of oil temporarily hit just $10. It later stabilised at $28 which is far lower than the $115 cost just 18 months ago.
While motorists will be pleased they can fill up their cars for less, the RAC has said the cuts should have come far sooner considering oil prices have been in free-fall for 18 months.
‘We would have liked to have seen a cut sooner, and one that goes further, to more closely reflect the price retailers have been buying diesel for, but this is nevertheless good news for motorists,’ said the RAC’s Simon Williams.
‘Diesel has been sold on the wholesale market for less than unleaded petrol since early last month, yet drivers have had to wait for more than six weeks for this to be only partially reflected at the pumps.
‘The wholesale falls are driven by a world currently awash with oil, which dropped to just $26 a barrel this week, a 75% decline from its $115 high 18 months ago. This turned up the heat up on the supermarkets and big fuel retailers to cut the price of diesel.’
Data from RAC Fuel Watch suggests there is further pressure on prices to come and ‘scope for between 1p and 2p to come off the price of a litre of diesel within the next fortnight’.
‘Nonetheless, we expect this latest price cut to be the trigger for the UK seeing the average price of diesel being sold on forecourts falling below the £1 mark – something that hasn’t happened since the end of March 2009,’ said Williams.