Diesel prices beginning to tumble

Retailers and supermarkets have cut the price of diesel since the Competition and Markets Authority (CMA) expressed concern of weakening competition in the retail fuel market.

According to the RAC, the average price of a litre of diesel at supermarkets fell by 7.44p, from 151.02p to 143.58p, over the two weeks since 15 May.

The gap between the average prices of a litre of petrol and diesel at supermarkets was 9p on 15 May, yet this difference has now shrunk to just 2.5p. However, the RAC believes supermarket diesel prices should still be around 6p a litre lower.

Fuel spokesman Simon Williams said: “Since the Competition and Markets Authority’s made its announcement about supermarkets increasing their margins compared to three years ago and said they will be formally interviewing bosses, it appears the rate at which the price of diesel has fallen has sped up.

“Significant cuts to the price of supermarket diesel were long overdue as its wholesale price has been below petrol’s since the end of March. As a result, average retailer margin on diesel had reached 22p a litre – more than three times the long-term average of 7p.

“We look forward to the results of the CMA’s review within the next four weeks and hope it heralds an end to poor value at the pumps. We also hope it means the biggest retailers start charging fair prices at all of their sites across the country, and not just at those where they’re competing directly with other forecourts locally.”