Asda cut its fuel prices for the second time in five days last week, after a substantial reduction by Sainsbury threatened to undercut it.

On September 23, Asda announced new maximum prices on unleaded petrol and diesel of 131.7ppl and 137.7ppl respectively.

Three days later Sainsbury’s said it was reducing unleaded by up to 6ppl and diesel by up to 4ppl from September 27.

It added that customers would pay no more than 129.9ppl for unleaded petrol and 136.9ppl for diesel, undercutting Asda by 1.8ppl and 0.8ppl respectively.

However, hours after Sainsbury’s announcement, Asda said that from September 27 it was cutting its maximum prices to 128.7ppl for unleaded petrol and 135.7ppl for diesel, 1.2ppl lower than Sainsbury’s prices.