Diesel prices to fall below petrol for the first time in 14 years as Morrisons cuts 2p off a litre

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The battle has just heated up on the front line of the supermarkets' price war, after Morrisons announced plans to cut 2p a litre off the price of diesel, meaning the cost of diesel will fall below petrol for the first time in 14 years.

Read more: Has Morrisons put its darkest days behind it?

Morrisons' announcement came after retailers were criticised by motoring organisations for keeping the price of diesel artificially high, despite the fact oil prices were falling.

However, Morrisons cautioned that at some petrol stations, "local competitive factors" mean diesel prices may be higher at some of its forecourts. 

According to petrolprices.com, the average price of diesel is currently 118.2p, with the lowest price in the UK at 112.9p, while the highest is 134.9p. Meanwhile, the average price of unleaded petrol is 116.75p.

While government figures have shown there are twice as many petrol as diesel cars on the road, more than half of cars and light commercial vehicles being sold are powered by diesel.

But at the beginning of July, RAC fuel spokesman Simon Williams pointed out that the retail price of diesel had "almost become a taboo subject".

“Not only are diesel drivers now being demonised due to the increasing concerns over harmful nitrogen dioxide and particulate emissions, they are consistently having to pay a premium for their fuel. And, all this comes after years in which the taxation system has encouraged motorists to buy low carbon dioxide emitting vehicles.
 
"This has led to a big take-up of small fuel efficient diesel vehicles by motorists believing their choice of vehicle was good for the environment as well as their pocket."
 
“While retailers are obviously free to choose how much they charge for petrol and diesel, we believe that motorists deserve to be treated fairly and that means forecourt prices that reflect the wholesale market.”