It’s always pleasing to be able to end the week on a positive note, and thankfully this week we can.
This is Money has reported that both Tesco and Sainsbury’s have reduced the price of diesel by two pence per litre as of today. It’s also been separately reported that Asda have followed suit with a similar reduction, and have also placed a nationwide “price cap” on diesel of 114.7 pence per litre at all of their filling stations.
This move is long overdue. As we reported last week, wholesalers are now charging retailers less for diesel than for unleaded, resulting in a nonsensical price variation between the fuel types.
Simon Williams of The RAC believes that fuel retailers could go much further, and argues that there is “scope for at least a 5p cut” in the per litre price for diesel. Whether this happens remains to be seen, but what’s occurring now bears all the hallmarks of a new supermarket petrol price war, and it’s worth remembering that this kind of pricing activity is what began to trigger a falling trend in fuel prices last time around.
Along with the continued freeze in fuel duty announced in this week’s budget, UK motorists finally have some cause for positivity. These small reductions may only seem like a small and inadequate gesture to some, but we hope this all marks the start of something good!
IMAGE CREDIT: Wikipedia