Diesel falls below £1.20 a litre for the first time in two years as Asda kicks off fuel price cuts

The supermarket highlighted that it’s the first time their diesel price has fallen below 120p in nearly two years.

The price cut announced today will mean customers pay no more than 116.7p per litre for petrol and 118.7p for diesel.

Dave Tyrer, Asda's senior fuel buyer, said: “Once again we’re pleased to be passing on wholesale cost reductions to customers.

“It will be a welcomed boost, especially to diesel drivers who are seeing some of the lowest fuel prices since 2018.

The new pricing will affect all 322 Asda petrol stations across the country.

Mr Tyrer said: “Anybody filling up at Asda will pay no more than 116.7ppl on unleaded and 118.7ppl on diesel regardless of where they live.”

Morrisons and Sainsbury's have since followed suit, announcing price cuts of up to 2p per litre for petrol and diesel, effective from Thursday and Friday respectively.

Many believe the savings are long overdue. RAC fuel spokesman Simon Williams said:

“The average price of fuel at the big four supermarkets has frustratingly been higher than it should be for the last two weeks.

“This has an adverse knock-on effect on drivers all over the country as smaller retailers have no incentive to compete, meaning everyone who drives loses out on getting a fair price for their fuel.

“It’s a shame drivers are made to wait for a 2p a litre cut rather than the supermarkets transparently passing on downward moves in wholesale prices.

“We strongly urge other retailers – big and small – to lower their pump prices so the average price of fuel comes down everywhere.

“The last Asda fuel cut earlier this month led to the average price of unleaded coming down by 2p a litre, so we expect to see an average price of 122p a litre in 10 days’ time. If diesel were to reduce by a similar amount that would yield an average price of 125p per litre, a price last seen nearly two years ago.

“A price of 116.7p for petrol is the lowest price Asda has charged for nearly a year. They last sold diesel for 118.7p in early April 2018.”

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Government figures published on Tuesday showed average fuel prices at UK forecourts stood at 123.5 per litre for petrol and 127.7p for diesel.

This is the lowest level for petrol since April 2019, and diesel since May 2018.

Find real-time local fuel prices in your area at RAC Fuel Watch.