The lowest unleaded petrol prices looked likely to fall below 120ppl as Forecourt Trader went to press, with the prices having fallen 6ppl in a month after the major multiples launched another round of price cuts at the beginning of last week.

Tesco beat its competitors to the punch by announcing cuts of ’up to 2ppl’ on unleaded petrol and diesel to take effect on Monday evening.

Peter Cattell, fuel director for Tesco, who in September celebrated opening the 500th petrol filling station, at Stourport in Worcestershire, said: "From tonight, we’ll be cutting the price of petrol and diesel at all of our petrol filling stations by up to 2ppl. As Britain’s biggest fuel retailer this means more motorists can make real savings. We also offer Clubcard points and savings through Clubcard Fuel Save, which saves our customers up to 20ppl."

The following morning Morrisons cut ’up to 2ppl’ from its prices for unleaded petrol and diesel, while Asda cut a full 2ppl from its price cap on both fuels, taking unleaded petrol to 120.7ppl and diesel to 124.7ppl

The retailer said it was its fourth cut in the past month meaning it had taken 6ppl off unleaded petrol and 5ppl off diesel since the end of September, bringing the lowest fuel prices since December 2010.

Andy Peake, Asda’s petrol trading director, said: "Asda has led and will continue to lead on these price cuts as we know how important it is that we pass savings straight back into drivers’ pockets as soon as prices fall.

"No matter where customers live, they will benefit from the same fuel price with our national price cap of 120.7ppl for unleaded and 124.7ppl for diesel."