Morrisons sells petrol for less than £1 per litre

Cost of diesel also drops as global oil price slumps due to coronavirus pandemic

Morrisons has reduced its petrol prices to a maximum of 99.7p per litre at its UK forecourts.

The supermarket said this is the first time the fuel has been “sold nationally” for less than £1 per litre since February 2016.

It has also cut its diesel price to no more than 104.7p per litre.

Morrisons’ head of fuel, Ashley Myers, said: “This price cut will help people who are travelling to work, those who are shopping for essentials, and those assisting the elderly and vulnerable during the crisis.

“We want to play our full part in reducing the cost of living and feeding the nation at this difficult time.”

Government figures show the average cost per litre of petrol and diesel on May 4 was 107.6p and 114.9p respectively.

The price collapse means filling a 55-litre family car is around £7 cheaper than seven weeks ago.

The reduction in the cost of fuel has been driven by a collapse in oil prices due to lower demand as global economies shut down because of the coronavirus pandemic.

Brent crude oil was trading at around $64 per barrel at the beginning of the year but sunk to under $19 last month.

The price hovered around $31 per barrel yesterday morning.

The number of UK motorists taking advantage of cheaper fuel is limited because the government has restricted the reasons for people being allowed to leave their home, although Prime Minister Boris Johnson said on Sunday that people in England can now “drive to other destinations”.

Department for Transport figures released last week showed that road traffic was around 58% lower than in early February.

RAC fuel spokesman Simon Williams said: “Although the lockdown is far from over, yesterday’s speech from the prime minister was a signal to British drivers that they can begin to make more trips by car again – so credit is due to Morrisons for taking the lead and selling its 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 sometimes a darker side to any large price cuts – they heap yet more pressure on some 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.”

Picture: PA A Morrisons supermarket sign selling unleaded petrol at 99.7p per litre at its store in Belle Vale, Liverpool, after the chain reduced its prices across its UK forecourts.