Asda’s pump price reductions prompted Morrisons and Sainsbury’s to also slash costs.

Here’s what you need to know…

From today, drivers filling up at any of Asda’s 322 petrol stations will pay no more than 118.7p per litre for unleaded and 120.7p per litre for diesel.

This is the second time the supermarket has slashed pump prices in a week, helping drivers save up to 7p per litre when filling up.

Morrisons is also cutting unleaded prices by 2p a litre and diesel by 4p a litre at its 335 forecourts. However, the price reductions don’t take effect until tomorrow .

Sainsbury’s is applying the same discounts on petrol and diesel across its 315 forecourts from Friday.

What the retailers say…

Asda senior fuel buyer, Dave Tyrer, said: “We’re pleased to be passing on these wholesale cost prices to customers as the price of oil continues to fall. This is the second time in a week we’ve led a price cut, bringing the cost of fuel down by up to 7 pence per litre.

“We will continue to put the savings straight back into drivers pockets without any vouchering requirements meaning all our customers, regardless of their budget, will benefit from a price cut at the pumps.”

Ashley Myers, Morrisons head of fuel, said: “The global oil price is dropping, so we want to pass on savings to our customers as soon as we can – and keep our fuel prices well below the UK average.”

David Pegg, fuel buying manager for Sainsbury’s, said: “We are committed to helping our customers live well for less, which is why we’re dropping fuel prices for the second time in as many weeks. Whether in store or at the pumps, customers know they will get fantastic value with Sainsbury’s.”

‘Price severely out of kilter for weeks’

The price cuts come as motoring group The RAC revealed the UK’s biggest supermarkets increased fuel prices every day in January until the very end of the month despite wholesale costs of petrol and diesel falling.

While drivers will be relieved pump prices are finally coming down at select forecourts, the RAC said it’s a shame it’s taken so long to see the cuts feed through as they should have already happened.

Fuel spokesman Simon Williams, said: “The cost retailers have been paying to buy in petrol and diesel, and the price they charge at the pumps, have been severely out of kilter for weeks. In fact, we had a bizarre and desperately unfair situation where the supermarkets were putting up prices when wholesale costs were falling, meaning drivers were paying far more to fill up than they should have been.

“We now need these cuts to be reflected by all retailers so the price paid at pumps all over the UK comes down from the current averages of 126.65p for petrol and 131p for diesel.

“As it takes time for price drops to filter through to forecourts, we urge drivers to be careful where they fill up to make sure they’re not being charged over the odds as prices can vary widely, even between supermarkets. The cheapest petrol is now available for under 119p per litre, and cheapest diesel under 121p per litre.”