The move has seen Asda cut the cost of unleaded by 2p per litre and implemented a cap on prices. The move – which applies to all of its 272 filling stations – means that drivers will pay no more than 105.7ppl on unleaded whilst diesel remains at a national price cap of 107.7ppl.

And Tesco, Sainsbury's and Morrisons all announced they were dropping the price of unleaded by up to 2p per litre.

In response RAC fuel spokesman Simon Williams said: "This is yet more good news for petrol car drivers who have enjoyed prices coming down in August as a result of a barrel of oil staying around or below $50 since the end of July. It’s very encouraging to see savings in wholesale petrol being quickly passed on to motorists at the pump.

“This should also have the very positive effect of reducing prices from other retailers around the country. Hopefully this will drive the average price of a litre of unleaded down well below its current level of 111p, back towards the six-year average low of 106p a litre we saw in January.”