Asda, Morrisons and Tesco have cut fuel prices by up to 2ppl, with major retailers expected to follow suit.

The move was initiated by Asda, which has dropped the price of fuel by up to 2ppl.

The move was initiated by Asda, which announced on Monday that it would drop the price of fuel by up to 2ppl, bringing prices down to a new national price cap of 114.7ppl on unleaded and 116.7ppl on diesel at all 301 filling stations.

Morrisons then announced it would drop the price unleaded and diesel by up to 2 pence a litre, followed by a similar offer from Tesco for its network of 500 filling stations.

RAC fuel spokesman Simon Williams said: “No doubt other retailers will follow suit and we will see prices on every forecourt come down.

“While this cut may come as a surprise to drivers as prices at the pump have been going the wrong way for months, it is has been on the cards for a couple of weeks – we’re very relieved retailers have acted without any need for encouragement.

“This price cut was made possible by the fact the oil price has dipped in the last two days of trading, reaching its lowest in nearly four months on news that the US has record crude supplies. Before that the OPEC oil producing countries cuts had been sending fuel prices up.”

Prior to the announcements, average fuel prices stood at 120p for unleaded and 122p for diesel.

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