Asda has become the first fuel retailer to cut prices following weeks of rising petrol and diesel prices across the industry despite falling wholesale costs.

Up to 3ppl have been taken off Asda’s national unleaded and diesel prices

Announced as the RAC issued a plea to retailers to pass on the recent reductions in wholesale costs, the move sees Asda slash up to 3ppl on unleaded and up to 2ppl off diesel with immediate effect.

Under Asda’s national price cap on fuel, this means that drivers across the country will pay no more than 124.7ppl on unleaded and 127.7ppl on diesel at any of their 318 filling stations.

The move was welcomed by the RAC who said that drivers have suffered near-daily fuel prices rises since 22 April, despite wholesale prices having dropped by between 2.5p and 3p since 22 May. 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.

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