Asda has sparked a supermarket fuel price war after announcing it would be slashing its diesel price to its lowest level since December 2005.

All 167 Asda forecourts across Great Britain and Northern Ireland have from today, (5th January) been selling diesel at 89.9ppl – a cut of 1.5ppl – while unleaded has been capped at 85.9ppl, a reduction of 0.2ppl.

Asda trading director, Andy Brem, said: “The unseasonably mild weather so far this winter has reduced heating oil consumption across Europe and the US. This, combined with a fall in the price of crude oil, has helped push prices lower. As always we are the first retailer to pass these savings back to drivers at the pumps.”

Tesco has already followed suit, with a spokesman confirming that the company would be matching Asda’s prices in areas where the two supermarkets compete, as well as reducing prices across its overall network.

A spokeswoman for Sainsbury’s added that she wouldn’t comment specifically on Asda’s pricing, but said the company "always strives to offer the most competitive fuel prices for the areas in which our forecourts operate.”