Two months after supermarkets cut diesel prices below unleaded petrol Asda has been the first to restore petrol’s position as the cheaper fuel.

Effective from today (Wednesday 23rd September) Asda is cutting the price of unleaded by 2ppl, making its national price cap105.7ppl on unleaded while diesel remains at 107.7ppl.

Andy Peake, Asda’s senior director for petrol, said: “We’re now seeing unleaded move back to its traditional place after two months of diesel being the cheapest fuel grade.”

Tesco then announced it had cut up to 2ppl off unleaded petrol and Sainsbury’s said it was cutting up to 2ppl from its unleaded petrol from September 24

RAC fuel spokesman Simon Williams said: “This is yet more good news for petrol car drivers who have enjoyed prices coming down in August as a result of a barrel of oil staying around or below $50 since the end of July. It’s very encouraging to see savings in wholesale petrol being quickly passed on to motorists at the pump.

“This should also have the very positive effect of reducing prices from other retailers around the country. Hopefully this will drive the average price of unleaded down well below its current level of 111ppl, back towards the six-year average low of 106p we saw in January.”

Average diesel prices are still marginally below unleaded according to the latest figures from Experian Catalist at 110.33pl versus 110.74ppl.