Asda has announced a new round of price cuts on fuel with 2ppl off diesel and up to 1ppl off unleaded petrol from Saturday August 8, and this was swiftly matched by Sainsbury’s.

Asda’s new national price cap on diesel will be 108.7ppl, its lowest price since early 2010. Unleaded petrol will be 111.7ppl at all of its 272 petrol stations.

Andy Peake, Asda’s senior director for petrol, said: “It’s the summer holidays and we know families will be getting out and about all across the country which is why we’re cutting yet more cost off the price of filling up your car. They will pay no more than 108.7ppl for diesel and 111.7ppl on unleaded at any Asda forecourt, and every single one of our customers knows this is the maximum price they will pay at the pump regardless of where they live.”

RAC fuel spokesman Simon Williams said: “July was a bumper month for diesel vehicle drivers with the average price falling by 5ppl, saving £3 on a fill-up. Now August is off to a flying start with another substantial cut which will help shave another couple of pounds off a tank of diesel, just as millions of people head off on holiday by car.

“Returning to a diesel price last seen in 2010 is probably something the country’s 10.7 million diesel car owners never thought they would see.

“With oil prices just under the $50 a barrel mark, there’s every chance even more cuts are just around the corner. And, if oil stays low and wholesale diesel remains abundant, we could even have a chance of seeing £1 a litre diesel.”