Tesco has launched a fuel deal offering 8p off a litre of diesel and unleaded as concerns grow over a deepening diesel crisis. The UK’s biggest supermarket says shoppers will receive a coupon for the discount when they spend £60 on a single in-store transaction from now until October 18. The coupon can only be used at Tesco forecourts across Britain and Northern Ireland until Sunday October 25.
Fuel prices surge amid Middle East conflict
The money-off deal comes as millions of motorists face a surge in pump prices, which have rocketed amid the ongoing Middle East war that has pushed up the cost of oil. Diesel drivers have been hit hardest, with the nationwide average now hovering around the £2 a litre mark, a record high. Prices at many forecourts are already well above that, and motorway service stations are typically charging almost 217p a litre, according to the RAC.
In addition to the 9.5 million diesel drivers in the UK, firms that transport goods by road are also feeling a significant impact. Another reason for diesel’s rise has been the effect of the conflict on refineries that produce the fuel.
Refinery shutdown and export ban fears
The looming diesel crisis threatens to worsen after the UK’s biggest refinery shut production for up to 10 weeks. Fawley refinery in Hampshire will be closed until November for maintenance, adding to concerns about the flow of fuel supplies across the country. The site, operated by ExxonMobil, makes almost one fifth of the fuel used on UK roads and also supplies jet fuel to Heathrow.
Donald Trump is preparing to make a decision on banning US diesel exports to countries including the UK. The President has floated the idea as he tries to push fuel prices down in the States ahead of next month’s mid-term elections. Reports say White House officials have briefed allies, including the UK, about possible disruption to their supplies.
Low diesel reserves in UK
Britain has only about 40 days’ worth of diesel in reserve, one of the lowest levels in Europe, according to Sky analysis of data from the International Energy Forum.
