Drivers filling up at Asda, Sainsbury's and Tesco will see petrol prices fall by up to 2p/litre from tomorrow.

Supermarket giant Asda has sparked a petrol price war as it announced it will cap the cost of diesel at 129.7p/litre from tomorrow, which it says is the first time prices have fallen below the 130p/litre mark since January 2011. The price of unleaded will also be cut from tomorrow to 126.7p/litre.

As Asda sets a national price cap, this is the maximum price you can expect to pay at all 234 of its forecourts. It says the price cut means a full tank of fuel now costs £5 less than last summer.

Sainsbury's and Tesco quickly followed suit by announcing they too will cut the cost of fuel by 2p/litre from tomorrow, but unlike Asda, the two supermarkets don't have a national price cap so pump prices vary regionally.

Morrisons says it won't be cutting prices as it "already offers some of the cheapest fuel in the country" but adds that it will evaluate price levels to ensure it remains competitive.

But tomorrow's price cuts won't necessarily mean Asda's, Sainsbury's and Tesco's filling stations will be the cheapest. To find the lowest price in your area, use the website Petrolprices.com and see our Cheap Petrol and Diesel guide for more ways to save when filling up your tank.

According to Petrolprices.com, the average UK price for a litre of diesel was 135.38p yesterday, while the cost of unleaded petrol stood at 131.10p/litre.

Martin Lewis
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