15.10.08 Petrol drops below �1 a litre

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47 comments 303 votes

Is �1 a litre still too much for unleaded?

The price of a litre of unleaded has fallen below �1 for the first time since last December as two retailers pledge to drop their pump prices.

Asda, the only UK retailer to have a nationwide pricing structure, has announced that by tomorrow morning all its stations will drop the price of unleaded to 99.9p and diesel to 110.9p.

Morrisions have followed suit and announced that they will also drop the price of their unleaded to 99.9p and diesel to 111.9.

Since unleaded first broke the �1 a litre barrier in November last year, prices have shot up at an alarming rate. At their peak on July 18th 2008, the UK average for unleaded was a staggering 119.9p and diesel was 133.4p.

The price cuts are a result of falling oil prices, which have dropped from highs near $147 a barrel to below $75. Fears of a world recession and reduced demand are thought to be driving falling oil prices.

With the doom and gloom in the economy at the moment this is exactly the sort of news motorists need. The price cuts by Asda and Morrisons should force other retailers to lower their prices too, meaning we could see falling prices right across the country over the next few weeks.

However, lower petrol prices are dependent on low oil prices, so if the banking crisis forces investors towards commodities we could see both the price of oil and petrol picking up again.

Do you have an Asda or a Morrisons in your town? Have you spotted your first 99.9p station? Is 99.9p low enough?

Your Comments

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For ordinary unleaded petrol at 99.9p/litre and with Excise Duty at (I think it is) 50.35 p/litre, the tax element is 65.23p and the non-tax element is 34.67p. The latter is the part of the price that is subject to market forces. If it comes down to 30p pump price falls to around 94.4p, at 25p the pump price falls to around 88.5p.

I'd be surprised it the non-tax element fell to even 25p; in my view we may possibly see another 4-8p reduction in the pump price to the low to mid 90s/litre.

The temptation then for the Chancellor to impose the postponed Fuel Duty increase may well become too much. After all he has a lot of money to recover.

Posted by Tony Priest, 15th October 2008 7:01pm

Good news from Asda ! Unfortunately here in Haverfordwest Tesco and Morrisons are always 2-3P above ASDA with both stores setting the same price for 95% of the time. Across the river in Pembroke Dock prices are always less because ASDA has a store near Tesco ! I know what you are thinking why dont we drive over to ASDA well the only bridge is a toll bridge 75P each way so that cancels out any savings.
In writing I have said before that I feel fuel prices will soon be the least of our worries !

Posted by Bogland, 15th October 2008 7:53pm

I heard on the news that the price of oil has been slashed from $145 a barrel to $80 a barrel - and we, the motorist get 3p off a litre?? There is something not right in the maths there!
The whole point of the price cut was to ease the global economy - at the wholesale end anyway - not the consumer end?
We should be able to see at least 10p a litre off at these rates.
Am I the only one thinking this?

Posted by Craig Davies, 15th October 2008 8:25pm

Morrisons in Stratford-upon-Avon have already dropped their prices to 99.9p and 111.9p, as of early this afternoon. All the other stations stayed high. Traditionally, Stratford has always been 3p a litre more than Warwick and Leamington just up the road.

I juts filled up and the station was busy!

Posted by Trevor Nelmes, 15th October 2008 8:55pm

Has everyone missed the point with falling fuel costs? Petrol in September 07 was around 95.9p ltr and diesel around 96.9p ltr - so why now petrol has dropped to 99.9 is diesel still 11p ahead at 111.9p? Perhaps, just perhaps the fuel companies have woken up to the increase in diesel cars, and are hoping that we have short memories.

Posted by Les Smith, 15th October 2008 9:00pm

We are still paying over 136p a litre for diesel, and over 125 unleaded, why is this if mainland retailers can get the price under 100p?

Posted by Simon Must, 15th October 2008 9:09pm

Oh I'm on The Isle of Harris,Leverburgh.

Posted by Simon Must, 15th October 2008 9:11pm

Yep, 99p/£1.11 at Morrisons Morecambe this evening too. Question is - how long will it last? I filled up in any case, you never know what's gonna happen!

Posted by Matt Fletcher, 15th October 2008 9:30pm

My nearest Petrol Store is Morrisons in Swadlincote, Derbyshire and i went there today and discovered that unleaded dropped 4p from 103.9p to 99.9p per litre. Since I passed my driving test on the 28th March 2008(nearly 7 months ago), it is the lowest I've paid for unleaded.

The latest economy crisis continuing, this is going to put prices further down and back where they belong.

Posted by Andrew Welch, 15th October 2008 11:25pm

My nearest stores haven't reduced prices yet but then again we don't have an ASDA. What i want to know is why the difference in price between petrol and diesel isn't getting smaller. Last year it was a few pence now its 10p at most forecourts and these latest cuts to get petrol under £1 have made it 11p or 12p. I feel like us diesel users are being overcharged and used to subsidise petrol users

Posted by Brian, 16th October 2008 7:39am

It's time to end our addiction to oil and here's how we can do it:

A Twelve-Step Plan to End Oil Addiction (courtesy of The Oil Drum)

1. Stop deluding ourselves. The era of cheap, readily-available oil has ended. Prices may fluctuate, but the underlying trend is up, up, up. We have to get used to using less.

2. Demand that politicians take the issue seriously. Make it an election issue. Don't take 'we've got everything under control' as an answer.

3. Stop building new roads. They're a monumental waste of money, time and effort. They encourage, rather than ease, congestion, and besides, the growth in car travel that's used to justify them isn't going to happen anyway.

4. Divert that money and effort into measures that address the challenges of oil depletion and climate change.

5. Make a major investment in public transport. It needs to be better, faster, more comfortable, more regular, and more predictable. It needs to cater for everyone, not just peak-hour commuters � though they need a better service as well.

6. Make a major investment in broadband internet to allow more people to work from home, and change tax and business practices that discourage working from home. The more car trips we can avoid, the better.

7. Electrify transport where possible. We should be electrifying commuter rail where it is not already electric and using light rail (trams) in the cities. On the other end of the scale, electric bikes and scooters can make a big difference in our cities. And electric cars show promise, though there's a lot of questions to be answered yet.

8. Don't use cars unless there's no alternative. Take the bus. Take the train. Switch to a scooter. Walk or cycle - both your wallet and your doctor will thank you.

9. Deal with other aspects of our oil dependence. Agriculture, for example, is highly dependent on oil. We're going to need to change the way we grow and distribute food. Let's get to work on that now, not wait until supermarket shelves start to empty.

10. Stockpile or manufacture vital products currently imported from overseas. When oil runs short, will that still be possible? Let's take stock now and work out what we may need to start stockpiling or making (again) in the UK.

11. Think local. Ending our oil addiction isn't just up to central government, though it can play its part. Communities can work together to make themselves more resilient. Join or start a Transition Towns group in your local area.

12. Accept reality. The age of cheap oil is over. It's not coming back. As individuals and as a nation, we have to adapt.

Posted by Peak Oil, 16th October 2008 8:07am

I DONT THINK THE PETROL PRICES ARE BEING LOWERD FAST ENOUGH,
THE PRICE OF A BARREL HAS DROPED TO THE SAME POINT AS WHEN EVRYONE WAS PAYING 0.85P PER LITRE. SOMONE IS STILL MAKING A QUICK PROFFIT,
GET THE LOWER PRICES PAST ON TO THE PUBLIC QUICKER.

Posted by Andrew Tierney, 16th October 2008 9:43am

Why are the prices around London still 4/5p for expensive than the rest of the country? 105.9 is the cheapest within 20 miles of my home !!

Posted by Stewart, 16th October 2008 10:49am

I think Andrew Tierney makes a good point and Petrol Prices should chart the cost of fuel at the pumps against the price of crude over time to show that prices should invariably be lower. I also agree with "Peak Oil" in that the age of cheap oil is over but this should not stop us from highlighting excessive profiteering.

Posted by Huw Bowles, 16th October 2008 1:01pm

Brent Crude dropped below $70 a barrel today. When it was $147 a barrel in May we were paying £1.19 at the pump, so in real terms we should now be paying around £0.56p at the pump. Why arn't we?

Posted by Ashley Young, 16th October 2008 1:21pm

Morrisons in Norwich
Unleaded is 99.9 Per Litre not 102.9 as listed on your site !!

Posted by Frank J House, 16th October 2008 2:22pm

THe price of unleaded and diesel may be falling, but the price of LPG has remained the same despite going up when petrol went up!

Posted by Phil Trickey, 16th October 2008 2:28pm

I live 40 miles from my work place, I can work from home but my employers do not want me to (even though I have a laptop and work at home oncall?), I spend over £240 a month on petrol easy. The government need to look at if they increase tax on petrol to force employers to allow employees to work from home thus I make a saving on travel, I am also doing my bit for the economy. I find it greedy the government increase tax on petrol and car tax but actually do nothing to get us off the road with a sensable plan rather than price us out. When times are good this is fine but in the current climate. Tax should be cut to keep the country from going into a recession. I maybe wrong but this government are party to blame as well as the banks. Comes down to greed and joe bloggs as usual suffers....

Posted by Martin Judge, 16th October 2008 3:28pm

I, like Phil Trickey find that the current reduction in price of petrol is not relected in a reduction in price of LPG, I did contact ASDA HQ some time ago and it would appear that they are not even interested in providing LPG. As far as I can tell the only major supermarket stocking LPG in a lot of their forecourts is Morrisons and they have not yet reduced the price even though they were the first to drop the unleaded to just bleow £1 per litre.

Posted by Lawrence Chriscole, 16th October 2008 3:44pm

99.9p for unleaded is pleanty cheap enough for me, but then again that goes into my motorbike. what i really hate is the 11/12p jump to the cost of diesel! i only run a car but think what its doing to the truckers still. cant blame them for moving to mainland europe and getting thier diesel for less than unleaded out there!

Posted by Duncan Bates, 16th October 2008 6:35pm

The Waitrose petrol station in Portishead, North Somerset is selling at 98.9p a litre.

I have to fill up tomorrow and normally fill my car with £35 worth of petrol and tomorrow hopefully not that it will go above £30.

Glad it has happen though

Posted by Mark Hemus, 16th October 2008 8:16pm

This comment has been removed as it was found to be in breach of our Blog Policies.

I bought unleaded at Sainsburys on Purley Way (Surrey) today at 104.9. It was cheapest within my search area and a major supplier but was not shown on search result at all. Is this site accurate?

Whilst filling up I asked why Sainsburys had not dropped their prices like Asda and Morrisons and was told "We don't have any of their filling stations near us". In other words they want to keep prices up to level they can keep market share.

Posted by Barry Gown, 16th October 2008 11:05pm

I too notice the search not being accurate or inclusive. In Stratford-upon-Avon we have Morrisons. The Unleaded price shows up on a search, but the diesel doesn't. Odd. Especially as it is cheaper than anyone else at 111.9p

BTW, diesel is more expensive because of demand. The same part of your barrel of oil goes to make heating oil and aviation fuel. Blame it on Ryan Air and the winter coming early in North America (where a lot more folk use oil for heating)! On the continent diesel is taxed much less than in the UK relative to unleaded.

Posted by Trevor Nelmes, 16th October 2008 11:21pm

Well you have notice unleaded pretrol has fallen to £99.9 but diesel prices are still high at averge price of £114.9 to £118.9. When we all no that it cost less to make diesel and why cant they bring diesel prices down too.

Posted by Mark Poland, 17th October 2008 7:49am

oil prices go up and down and now petrol moves with it What about all the LPG drivers This so called cheap fuel keeps going up and up and nobody seems to mind When is it going to move down in line with petrol Is there nobody fighting on our behalf Perhaps we dont count as green machines anymore Come on Gordon we all pay taxes

Posted by Roger Clark, 17th October 2008 5:12pm

Co-op tweedmouth berwick-upon tweed is unleaded 98.9 diesel 111.9 , looks like its gonna keep dropping fingers crossed

Posted by Jan Roberts, 17th October 2008 6:59pm

Well
Here we are now under a £1 per gallon but facing recession , job cuts and a lower standard of living. The irony is that the obscenely wealthy few who have created and gained from this situation are laughing at the rest of us and will lead a lifestyle that we cannot even immagine. Meanwhile they will laugh all the more that the angry masses will elect a toffs government which will enable them to keep even more of their ill gotten gains. What do we get from the BBC for information Panarama fronted by Jeremy Vine with the content resembling the old Jimmy Young Radio Show with text messages from Joe at Burnley and some poor bloke and his family agonising over if he had contributed to the greed having bought a new juicer for his kitchen.
Vine finished the program by reaching the conclusion that wait for it! Yes folks we are all to blame by being too greedy. Christ have we all become a nation of Sun readers to accept such cxxp!

Posted by Bogland, 17th October 2008 8:46pm

this is good for me as me work local, 3 miles from home to work and back home, as i have a fast car with an exhaust so big that is loud and burns more petrol, i can now do 40 pounds a month with ease, but I hope the prices get lower, as most of my work collegues live over 60 miles from home to work and back and have bought 1 litres ka's to beat the petrol price's which is no good as my work car park is like a ford sales forecourt. plus this site is great as me get prices daily even if they wrong some times.

Posted by Asim, 19th October 2008 12:23pm

Just filled up at BP Anson, Gosport. Their price 99.9p per gallon, congrats to the operators in acting so quickly.

Posted by Phil Lawrence, 19th October 2008 5:54pm

I'm loving this, I've been ripping up tescos car park doing donuts every night.

Gonna get me a V8 :-)

Posted by A Benylin Junkie, 20th October 2008 5:38pm

I hear that Morrison's, and possibly others, have dropped the price of unleaded to 97.9p/litre.

And people are queueing to fill up, even with £5's worth, a saving of about 10p.

Crazy.

Posted by Tony Priest, 20th October 2008 7:34pm

I am one of the slow growing number of drivers that decided to buy a car that will run on lpg to do a bit for the environment.

I am watching with interest how the relationship between LPG and unleaded is moving. A year ago it was exactly half, now it appears that the retailers are clawing back lost sales by keeping LPG higher for longer.

I would like to challenge them directly if anyone has the contac details for Total or Sainsbury

Posted by Andrew Bailey, 21st October 2008 2:50pm

The reason why the fuel prices are not the same as last year / 10 years ago etc, is that the price of the £ vs $ is different, we get less fuel for our money because the £ is weaker. It's not just the cost of digging it out of the ground that you need to take into account when selling / buying fuel...

But what I want to know is why is diesel still more expensive than Petrol? Will diesel go up again in the winter when they add the additives to stop it from freezing? Is the stamp duty of diesel more than petrol? Am I not imagining it that when diesel was invented, the government promised it to be 50% cheaper than petrol? I am reluctant in ever buying a LPG car (or other) just incase in x years time the government decide to tax that fuel to death also...

Posted by Rob Page, 21st October 2008 4:58pm

Rob - Diesel is more expensive simply due to supply and demand. Many years ago it would have been much cheaper, because not many people were using it.

When crude oil is refined there are a number of different products, if there is comparatively less demand for one product, its price falls, and can become classed as a "waste" product. That's why LPG is cheaper, and is probably why air travel is "cheap".

If you google "Energy Trends BERR 30881 PDF", and look at Chart 3.3 (Page 9), you'll see that since 2005, demand for diesel has grown above demand for petrol.

Posted by Bandidoz, 21st October 2008 6:01pm

I note that despite one or two comments, nobody has come up with why LPG is not lowering ar the same rate as normal fuel. I run LPG on my motorbike combo and due to the cost difference, use the bike where at all possible. However, why should I if the cost is narrowing beween the two? The bike has its disadvantages at this time of year, lol, mainly my nether regions!! So why put up with it and help the planet when I can use the car?
Someone in Government has to look at this...if they are serious about anything that can help the enviroment.
I do realise that there are not many bikes running on LPG, but there are a good number of cars and I assumed LPG was better for the planet....or have I got that wrong?

Posted by Kenny Johnston, 23rd October 2008 11:53am

CHEAPEST PETROL AT KP HILL SERVICE STATION(M9 8WQ) @ 95.9

Posted by Isaak Kassam, 23rd October 2008 9:50pm

Hi ,
All can any one please explain WHY is Diesel so Higher than Petrol.
and why dos this site help you find cheep Diesel. Yes the are a lot of
Expensive cars out there who need Diesel Diesel Diesel.

stuff the Environment, the UK is such a small place it don't matter what
we do its the USSR, USA South America, Africa, China who is doing all the
damage.

So F....... them All we so small WHY Should we pay for them give us cheep
Diesel yes can any one tell me where i can get it from cheep Diesel

Posted by Edward Jackson, 28th October 2008 11:06pm

I too am perplexed about the high price of Diesel. Unleaded is available near me at a price of between 92.9 & 96.9 per litre depending on the outlet. Yet given that 4p variation ALL of these outlets are selling Diesel at 106.9. How come there is no variation in the Diesel price too.
This time last year (Oct 2007) shopping around I could find petrol AND diesel selling at 96.9 per litre. I don't believe that demand for diesel has risen enough in one year to justify a 14p a litre differential.
So who is making the profit here? Oil companies or retailers? Or have retailers just taken their eye off the diesel 'ball' in order to compete on petrol.
As soon as I see a differential I'll go for it and hope that all of you do too. We must put pressure on the retailers to bring down prices. In the meantime I'm taking full advantage of the 5p off supermarket offers. Sainsbury's coupons are valid for 21 days. This gives scope to get some good value tanks full.

Posted by Richard Young, 10th November 2008 11:57pm

As I said in Post 35.....

Diesel is more expensive simply due to supply and demand. Many years ago it would have been much cheaper, because not many people were using it.

When crude oil is refined there are a number of different products, if there is comparatively less demand for one product, its price falls, and can become classed as a "waste" product. That's why LPG is cheaper, and is probably why air travel is "cheap".

If you google "Energy Trends BERR 30881 PDF", and look at Chart 3.3 (Page 9), you'll see that since 2005, demand for diesel has grown above demand for petrol.

Posted by Bandidoz, 14th November 2008 9:27pm

Stated on Sky today that the price of oil was now the same as it was 3 and a half years ago. Does anybody know the price of fuel on the forecourt then?

Posted by Glenn Beighton, 20th November 2008 4:37pm

RE: 41
About 84.9 for unleaded and 87.9 for diesel.

Don't forget that increased Duty would add 3.82 pence per litre to those prices and also the £ has collapsed against the $.

The other thing to bear in mind is you don't buy crude oil on the forecourts - and the supply and demand of REFINED products will affect the price you pay at the pump.

Posted by Jackson, 21st November 2008 8:50am

3/7/08 petrol was $1150 per ton 21/11/08 $350 per ton! that's 70% lower
3/7/08 diesel was $1320 per ton 21/11/08 $560 per ton! that's 60% lower
All above are the spot price
We have not seen this percentage drop at the pumps, WHY?

Posted by Anthony Warburton, 22nd November 2008 9:59am

Re: 43
Because Duty is fixed at 50.35 pence per litre and the £ has collapsed against the $.

Posted by Jackson, 22nd November 2008 12:27pm

In reply to Bandidoz (40 & 35) I have read the Energy Trends report which shows current Diesel demand about the same as last year & currently about 1% higher than last year in comparison to Unleaded. It also shows that supermarkets have increased their share of the Diesel market.
To me this suggests that diesels drivers are shopping around more for diesel value and also that road hauliers have reduced their demand for diesel as they don't use supermarkets to fill up.
This should mean that diesel is no more than 1-2% (i.e.1or 2p) more expensive than a year ago at most in comparison with unleaded. Therefore diesel should be around 94p a litre now not 1.04.

Posted by Richard Young, 23rd November 2008 11:43pm

Petrol is at 89p here in Rotherham, South Yorkshire

But what the hell is happening with diesel prices they are very high and no one talks about this on the news.

Posted by Matt Waterman, 24th November 2008 8:22pm

Morrisons were the first supermarket to cut the price of fuel below one pound.not ASDA.

Posted by Mr. Barry Hunt, 25th November 2008 9:28am

Subject; - Highways and user safety.

Dear Sir,

My background. Apprenticed five years with agricultural engineers and learned to handle many types of vehicle. Passed driving test in goods ["C" class van]. Did National Service and pushed into driving on active service in UK/Germany & Malta. My last fifteen years doing Heating & Ventilating commissioning, mainly in London but often travelling between installations supervising and trouble shooting. During this time I was once fined for speeding on a motorway. I was feeling ill that morning, asked twice if I was alright while my licence was checked [I answered no!] then left alone. I returned to my doctors, he sent for an ambulance which took me to hospital. "Suspect heart attack."

1./ I believe. All people should be responsible for their actions.
2./ Technology is being misused .
3./ Loss of direction sign posts. Thousands of limit and restriction signs demand too much driver attention.

An on vehicle monitoring device that would record details of acceleration, braking, speed and side thrust during cornering with steering angle would make it possible to sort out the good from the bad. If the device made the driver log on while recording time, then there would be no doubts or need for statements, giving no room for lies.
This simple device would reduce police time. Eliminate lots of court time, making insurance cheaper and legal beagles redundant. The idea of introducing NO speed limits at all, is the inability to define what is, reasonable
.
Thought for the day.
Before the war road tax funds were so large they were diverted to pay for a large part of the war effort. Now that charge is is not said to be for road repairs. Lack of local provision for parking, so called traffic calming has given the motorist more expence searching for parking space. This leads to driver stress, longer engine running time and suspension, tyres and wheels damaged. Not at all in line with statements of most government agencies; to support the drive against global warming.

Sincerely,

Signature
Eric Goldup

Posted by Eric Goldup, 5th January 2009 5:11pm

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