By Jonathan Davies

Diesel prices have fallen below the price of petrol for the first time in over a decade, after supermarkets announced price cuts.

Morrisons cut diesel prices by 2p and the other big supermarkets also announced their own reductions.

It is the first time diesel has cost less per litre than petrol since July 2001, when the average price was 77.92p compared with 77.94p for petrol.

Morrisons said the cut comes after a fall in the cost of wholesale diesel.

Mark Todd, petrol director for Morrisons, said: "This is a milestone in motoring and many younger drivers won't remember the last time that diesel prices were lower than unleaded."

Explaining the flip in prices, RAC fuel spokesperson Simon Williams, said: "With the price of crude oil standing at $56.50 and the pound relatively strong against the US dollar - the fuel trading currency - there is scope for further price cuts of up to 4p per litre off diesel over the next fortnight, and unleaded may even benefit from a slight reduction too due to the continued oversupply of oil.

"Drivers of unleaded petrol vehicles should not feel short changed - what we are seeing is the diesel pump price coming down to a level closer to what it should be due to the effects of greater refining capacity in the Middle East."