Asda is to cut its petrol and diesel prices amid claims that fuel retailers are overcharging motorists.
The supermarket announced it will reduce the cost of petrol by up to 1p per litre and diesel by up to 2p per litre from Tuesday.
It is the firm’s seventh fuel price drop in the past three months, cutting pump prices for a litre of petrol and diesel by 14p and 11p respectively.
Asda’s national fuel price cap will be £1.14p per litre of petrol and £1.24 per litre of diesel.
Motoring groups have accused retailers of refusing to fully pass on recent reductions in wholesale costs.
RAC fuel spokesman Simon Williams said: “This cut is very welcome news, but the big question is whether the other supermarkets will respond and drop their prices sufficiently at all of their sites.
“Drivers badly need the supermarkets to start competing on price again as the so-called price war has been cold since the middle of October.
“If this doesn’t happen then today’s Asda cut will not lower the average price of petrol and diesel across the country by as much as it should.
“This will mean drivers who are not near a low-cost fuel retailer will continue to pay over the odds. The price of petrol at the other supermarkets is currently about 3p more expensive than Asda compared to the normal gap of just over a penny so there is some catching up to do.”
Average fuel prices reached a four-year high in October, with petrol at £1.31 per litre and diesel at £1.37 per litre.
Last week a group of MPs called for an independent body to monitor fuel costs.
The All-Party Parliamentary Group for Fair Fuel wants a body – which could be named PumpWatch – to oversee fuel prices in a similar way to the scrutiny faced by utility providers.