UK: Supermarkets compete for cheapest fuel with more cuts

Fuel prices in the UK continue to drop as the four biggest supermarkets cut their prices once again.

Morrisons has been the latest retailer to announce a slash in diesel prices of 4 pence a litre at all their gas stations, after a weekend when all the other main supermarkets cut their fuel prices, reported BT.

The first was Tesco, last Friday, which announced a 2p per litre cut in diesel and 1p for unleaded across their 500 service points.

Sainsbury´s and Asda followed on Saturday, with the former slicing the cost of diesel by 2p and unleaded by 1p in their 300 gas station network. Meanwhile, Asda applied an official price cap nationwide that will see drivers not paying more than 108.7p per litre for diesel and 111.7p per litre on unleaded, matching their competitors.

The UK is currently experiencing a supermarket fuel price war which is boosting consumption in the summer driving season. Diesel drivers, who have traditionally suffered high prices, saw the price of diesel under that of unleaded for the first time in 15 years.

Experts say the price of diesel could drop to as much as £1 a litre amid competition among retailers and collapsing Brent oil prices, reports the Independent.