Supermarket fuel retailers are being called on to slash 3p a litre off petrol and diesel after a sharp drop in the price of oil.

Supermarkets are being urged to pass on the drop in oil prices to consumers

The call comes from the RAC following a $5 (£3.60) fall in the price of a barrel of oil.

The organisation said the ‘big four’ supermarket fuel retailers have the scope to cut their pump prices significantly, which currently between them average 119.49p for petrol and 122.13p for diesel.

This would then spark similar reductions around the country’s 8,500 forecourts.

RAC fuel spokesman Simon Williams said: “There is often talk of sudden supermarket price wars over fuel, but in reality we all know they constantly use petrol and diesel prices to drive customers into their stores. Saying that, the fall in the wholesale fuel price gives them a great opportunity to turn up the heat in what has become something of a ‘cold pump price war’ in recent weeks. The question is which supermarket will make the first move.”