Morrisons leads way as it cuts petrol prices to under £1 a litre

A YORKSHIRE retailer has become the first major supermarket chain to cut fuel prices to below £1 a litre after the collapse of global oil markets.

Bradford-based Morrisons yesterday reduced its petrol prices to 99.7p a litre at its UK forecourts, in a move which may prompt other superstores to follow suit.

The company – which earned praise from industry analysts – said this is the first time the fuel has been “sold nationally” for less than £1 a litre since February 2016.

It comes after the Prime Minister signalled that drivers can now make more trips by car. Morrisons has also cut its diesel price to no more than 104.7p per litre.

Morrisons’ head of fuel Ashley Myers 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.”

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

The price fall means filling a 55-litre family car is around £7 cheaper than seven weeks ago. The cut in the cost of fuel has been driven by a collapse in oil prices due to lower demand as economies shut down because of the coronavirus pandemic.

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 Boris Johnson

said on Sunday that people can now “drive to other destinations”.

RAC spokesman Simon Williams 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 – so 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.”