Asda sparked a round of price cuts on fuel on Monday January 7 when it announced it would cut up to 1ppl off unleaded petrol and 2ppl off diesel from the following day.

The retailer’s new price means that drivers across the country will pay no more than 113.7ppl on unleaded and 123.7ppl on diesel.

Asda’s senior fuel buyer, Dave Tyrer, said “As a result of wholesale prices recently falling we’ve been able to pass these savings onto our customers, giving them a good start to the New Year. Motorists filling up at Asda will pay no more than 113.7ppl on unleaded and 123.7ppl on diesel.”

Identical cuts were later announced by Morrisons and Sainsbury’s, although Sainsbury’s cut was scheduled to take effect a day later.

RAC fuel spokesperson Simon Williams commented: “This cut is very welcome news, but the big question is whether the other supermarkets will respond and drop their prices sufficiently at all of their sites.

“Drivers badly need the supermarkets to start competing on price again as the so-called price war has been ‘cold’ since the middle of October.

“If this doesn’t happen then Asda’s cut will not lower the average price of petrol and diesel across the country by as much as it should. This will mean drivers who are not near a low-cost fuel retailer will continue to pay over the odds.

“The price of petrol at the other supermarkets is currently about 3ppl more expensive than Asda compared to the normal gap of just over a penny so there is some catching up to do.”