Asda this morning cut up to 3p per litre on unleaded and up to 2p per litre off diesel at its 318 forecourts.

As Asda now applies a national price cap on fuel, drivers across the country will pay no more than 124.7p per litre on unleaded and 127.7p per litre on diesel.

This was followed by Morrisons which also announced unleaded would be cut by up to 3p a litre and diesel by up to 2p per litre. However this reduction will take effect tomorrow at its 334 filling stations across the UK.

And Sainsbury’s waded into the petrol price war, confirming it too would slash unleaded by up to 3p per litre and up to 2p for diesel. Like Morrisons, the price cut will take effect tomorrow at its 311 forecourts. Drivers heading to Sainsbury’s will be able to collect Nectar points with each fill up – one point on every litre.

Last to the pack was Tesco which will drop both petrol and diesel prices by up to 2p per litre at its 500 filling stations from 5pm today.

Drivers have faced rising petrol prices over the last few months, and in May were hit with the biggest monthly rise in pump prices in 18 years.

But wholesale oil prices have fallen from $80 a barrel in May to $76. And the RAC earlier today urged retailers to pass this reduction onto customers by cutting forecourt prices by up to 2p per litre.

‘Retailers have done the right thing’

Rod Dennis of the RAC, said: “At last, retailers have done the right thing and started to cut prices at the pumps. From our data, we could see no justification for them holding on to savings that they have been benefiting from for three weeks.

“With petrol prices rising at their fastest rate in 18 years last month, millions of households and businesses will have been feeling the effect of having to spend more on what is an essential purchase for many. Today’s cuts should bring some welcome relief.”