Morrisons cuts price of unleaded by up to 2p-a-litre

Asda has dropped the price of fuel from 9ppl on diesel and 5ppl on unleaded in the last month.

The cut is already in effect at Asda with Tesco introducing it at 1pm today (21st August) and Morrisons following at 2pm.

The government had in four installments raised excise duty on petrol and diesel between November and January to take away the reduction in retail rates that was warranted from falling worldwide oil prices. “And if Brent Crude have been to maneuver to the 40 US greenback per barrel mark, the prospect of some enterprising retailers promoting gasoline for £1 per litre will make a return”.

RAC spokesman Rod Dennis said: “This latest price cut [from Asda], coming just two weeks after the last, will be met with cheer from drivers of the country’s 19 million petrol cars, who will have noticed that diesel drivers have been enjoying substantially lower prices for over a month now”.

ASDA has given motorists a weekend boost with a fuel cut.

The government is not planning to raise excise duty on petrol and diesel to mop up gains accruing from oil prices that slumped to six-and- half year low, unless oil falls to $30 (per barrel) level.

Diesel prices have steadily been decreasing since May, pushed down by increased capacity from Asia.

However, it stopped comparisons with Tesco last October, arguing that Asda was seen as the benchmark on price.

‘If the conditions stay right, we could see some even lower prices in a few weeks as people return to work after the summer and the school run begins again’.

‘The July fall in diesel auto sales may be a blip, but its echo of the sales downturn in 2008 after diesel vehicle owners lost out badly on pump prices sends a warning signal’.

“The present weak spot in world markets is working within the favour of motorists as a result of plummeting oil costs are combining with a robust pound to assist us scale back petrol costs”, stated Jamie Winter, Morrison’s service director.

‘However it is worth remembering that the biggest influence on what motorists pay at the forecourts is not the oil price but taxation’.