Price of diesel drops below petrol at Shropshire pumps

Supermarket giant Morrisons has announced it is cutting the price of diesel by two pence a litre from today – which is expected to spark a forecourt price war with rivals, who are likely to follow suit.

The supermarket's petrol station at Spring Hill, Wellington, is now charging 113.9p a litre for diesel, and 115.9p a litre for petrol.

In Shrewsbury, the price of diesel was even cheaper, at 112.9p a litre compared to 114.9p a litre for petrol.

Elsewhere, Church Stretton Service Station at Crossways Industrial Estate was charging 116.8p a litre for both petrol and diesel alike.

The news is set to bring welcome relief to hauliers and taxi drivers in the county.

For years they have complained that they were being penalised by paying more than motorists using unleaded petrol.

AA president Edmund King today said UK motorists were still being "ripped off" despite the falling prices.

But Brian Davies, owner of Shrewsbury-based Salop Haulage, said any cut in fuel prices would be welcome news for the industry.

"I spend £17,000 to £18,000 a month on fuel," he said.

"After wages it's the biggest cost that we face, so it's always good news when prices are coming down."

Andy Stevens, operations manager at Telford-based RHP Transport, said diesel prices had been falling gradually for some time.

He said the possibility of a price war was welcome news after several tough years, but said only time would tell whether the price cuts would be the same at the trade filling stations which his company used.

"Fuel is one of the biggest costs we face, so anything we can save is going to be beneficial," he said.

"However, we do not buy our fuel from the supermarkets, and the places we buy our fuel from do not necessarily mirror that in the supermarkets."

Dave Hayward, managing director of DG Hayward Transport in Sutton Maddock said diesel was the biggest cost to the industry, and the lower prices the better.

"It's a very competitive industry so we need all the help that we can get," he said.

"The general public and the government do not appreciate our industry.

"They would have no food or anything else in the shops if it wasn't for the lorries on the road."

Steve Hughes, manager of Go Carz taxis in Shrewsbury, welcomed the news.

"Our drivers buy their fuel from the petrol stations like everybody else, so it is good news," he said.

"Obviously it reflects on the drivers' incomes, so anything which reduces their costs is to be welcomed."

Diesel prices started falling earlier this month after motoring organisations criticised retailers for keeping prices high despite plummeting wholesale prices. Morrisons said it would 'continue to look for opportunities to pass on savings on unleaded as soon as we can' following the news.

PetrolPrices.com reported that the average price of unleaded last night was 116.75p while diesel cost 118.21p.

Morrisons said diesel would be cheaper than unleaded at the vast majority of its 336 petrol stations, although "local competitive factors" may mean prices would remain higher at a handful of stations.

Mr King said: "UK drivers on European roads this summer will discover a whole new world of transparent pricing at the pump.

"Many will find the £1 a litre that was so elusive when oil prices crashed at the start of this year. Most importantly, ordinary diesel car owners will see just how much they are being exploited and ripped off by a UK fuel industry that thinks it is acceptable to manipulate the prices these drivers pay."

RAC spokesman Steve Williams said the organisation had been calling for lower diesel prices for a number of weeks.

"Throughout June the wholesale price of diesel has been below that of petrol yet this has not been reflected at the pumps," he said.

"There is still time for 4p per litre to come off the average price of diesel and we hope there are more cuts to come."

Last week experts at the AA said UK drivers would discover petrol and diesel priced at £1 a litre or even less when they drove around mainland Europe over the summer on their holidays.