Morrisons cuts petrol price to under £1 a litre

Morrisons has cut the price of petrol to a maximum of 99.7p a litre at all its UK forecourts with immediate effect.

The move is the first by a major supermarket chain to reduce the price of petrol below the £1 threshold since oil prices crashed last month as a result of the global coronavirus lockdown.

The retailer also said this was the first time petrol had been “sold nationally’’ for less than £1 a litre since February 2016. It has cut its diesel price to no more than 104.7p a litre.

Morrisons tweeted that the move was a thank you to key workers who still needed to travel for essential work during the pandemic. The price cut comes as the government prepares to announce further details of a more general return to work.

Ashley Myers, the head of fuel at Morrisons, said: “This cut will help people who are travelling to work, those shopping for essentials, and those assisting the elderly and vulnerable. We want to play our full part in reducing the cost of living and feeding the nation at this difficult time.”

Traditionally when one supermarket lowers its fuel prices, the others follow suit. Morrisons, which has 337 fuel forecourts in total, said a motorist would on average save £4.50 on a 50-litre tank of petrol.

Simon Williams, fuel spokesman for the RAC motoring group, said: “Although the lockdown is far from over, yesterday’s speech from the prime minister was a signal to drivers that they can begin to make more trips by car again. Credit is due to Morrisons for taking the lead and selling petrol and diesel at what is a very fair price and one that is much more reflective of what the retailer is itself paying to buy the fuel in.

“Unfortunately though there is a darker side to any large price cuts – they heap yet more pressure on smaller independent fuel retailers, who in some cases are already fighting for survival as a result of the coronavirus outbreak.

“It remains to be seen how long prices this low will persist for, with some early indications that wholesale petrol prices have started to rise as a result of the world oil price creeping up.”

Elsewhere in the UK the average price for fuel still stands at 108.74p per litre for petrol and 114.26p for diesel, according to RAC Fuel Watch.

Source: Read Full Article