From today, drivers filling up at any of Asda’s 322 petrol stations will pay no more than 116.7p per litre on unleaded – the lowest price since April 2019, and 118.7p per litre on diesel. This is the first time in nearly two years that diesel prices have fallen below the 1.20 mark.

Morrisons and Sainsbury’s also announced a cut in fuel prices off the back of Asda’s move, citing a fall in wholesale costs.

From tomorrow, Morrisons will cut the cost of unleaded and diesel by up to 2p a litre at all 337 forecourts.

Drivers filling up at any of the 315 Sainsbury’s forecourts will benefit with up to 2p off per litre of unleaded and diesel from Friday.

Earlier this month Asda sparked a petrol price war among the supermarkets. Since January, it has slashed pump prices by 9p per litre following a fall in wholesale costs. However, its Income Tracker report for January revealed that unleaded and diesel prices actually rose by 2.3p and 2.6p per litre respectively.

Asda senior fuel buyer, Dave Tyrer, said: “Once again we’re pleased to be passing on wholesale cost reductions to customers. It will be a welcomed boost, especially to diesel drivers who are seeing some of the lowest fuel prices since 2018.”

Luke Bosdet, the AA’s fuel price spokesperson, said retailers and suppliers have had an 11p surplus to play with but many forecourts have held on to savings from lower wholesale costs feeding through to their pumps.

He said: “Even when Asda announced its second price cut of the year, a 3p-a-litre reduction on Wednesday 29 January, it took until the following Monday for the UK average to drop just a penny as other retailers squeezed another weekend’s worth of high prices out of consumers.”