Price war rumours as supermarkets slash cost of fuel ~ station of gear

Fuel duty could be frozen for next two years

A fuel price war could be on after Tesco, Sainsbury’s and Asda supermarkets cut prices for petrol and diesel fuels

2015-08-07 16:00

In a welcome move for thousands of motorists heading away on holiday this weekend, Tesco, Sainsbury’s and Asda have all announced a reduction in their fuel prices.

Price cuts of 2p per litre of diesel, and 1p per litre of unleaded petrol, are to be brought in from 3pm today in Tesco filling stations and the other supermarkets will take similar action by tomorrow morning.

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Asda has announced a price cap promise for its fuel, that will restrict petrol and diesel to no more than 111.7p and 108.7p per litre respectively. Like the Tesco price drop, this will be put in place in all of the supermarket’s 272 filling stations nationwide. While the other supermarkets have failed to announce such a cap, it is expected that their prices will still be very similar to these rates.

The supermarket fuel price cut comes amid a fascinating time for fuel prices. Government figures show petrol to be, on average, 0.9p more expensive than diesel per litre - the first time in 10 years that diesel has been cheaper than petrol. This drop in prices has largely been the consequence of an influx of increased supply of diesel from the Middle East, and a strengthening pound.

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The oil glut combined with these price drops coming from major players in the domestic fuel market are set to continue to reduce the price you pay at the pumps - who knows, maybe the days of pound a litre fuel could be making a return.

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Mohammed Lone

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