Supermarkets have announced fuel price cuts hours after the RAC criticised them for holding onto savings resulting from a fall in wholesale prices.

Asda was the first to react cutting up to 3ppl on unleaded and up to 2ppl off diesel with immediate effect, meaning its new national price cap is 124.7ppl on unleaded petrol and 127.7ppl on diesel at all of its 318 filling stations.

Asda CEO and president Roger Burnley commented: “We know that the cost of living is centre of mind for our customers and we will always do whatever we can to reduce that burden. Customers can trust us to lead the way when it comes to lowering the price of fuel and putting cash back in their pocket.”

Shortly afterwards Sainsbury’s and Morrisons announced similar price cuts would be implemented tomorrow (June 14).

RAC spokesperson Rod Dennis said: “At last, retailers have done the right thing and started to cut prices at the pumps. From our data, we could see no justification for them holding on to savings that they have been benefiting from for three weeks.

“With petrol prices rising at their fastest rate in 18 years last month, millions of households and businesses will have been feeling the effect of having to spend more on what is an essential purchase for many. Today’s cuts should bring some welcome relief.

“It is absolutely right that at times when wholesale prices are falling, forecourt prices follow suit.”