1. ITV Report

Supermarkets drop diesel prices to less than 98p a litre

Two of Britain's biggest supermarket chains have cut the price of diesel to 97.7p per litre, following the fall in oil prices.

Asda has become the first major retailer to further drop the price of diesel Credit: Lynne Cameron/PA Wire

Asda was the first to introduce the 2p reduction, saying it would take diesel to its lowest price in more than six years. Rivals Tesco announced they would match the 97.7p per litre price shortly after.

Oil prices have fallen by 30% since early December, with Brent crude sinking to less than 27 US dollars a barrel earlier this week.

We're delighted to be the first retailer to take diesel to its lowest price level in over six years. This latest announcement shows that we're committed to being the driving force behind lowering fuel prices across the UK regardless of where you live.

– Andy Peake, Asda senior petrol director

Motoring groups welcomed the news, but said drivers had been waiting too long for a drop in costs, given the dip in oil prices.

We would have liked to have seen a cut sooner, and one that goes further, to more closely reflect the price retailers have been buying diesel for. But this is nevertheless good news for motorists.

Diesel has been sold on the wholesale market for less than unleaded petrol since early last month, yet drivers have had to wait more than six weeks for this to be only partially reflected at the pumps.

– Simon Williams, RAC fuel spokesman

A recent study by FairFuelUK found that, since May last year, oil prices have fallen by more than 54% but retailers have only cut pump prices by 35%.

The report said retailers' profit margin for diesel is 11p per litre compared with just 5.8p per litre for petrol.

A Tesco spokesman said it would continue to review prices "subject to changes in oil markets and foreign exchange movements".