Supermarkets cut petrol prices

Asda said this morning that drivers filling up at its 192 filling stations will pay a maximum of 128.7p a litre for petrol and no more than 136.7p a litre for diesel, which is the lowest level in nine months.

This is down from a maximum 130.7p per litre on petrol and 137.7p per litre on diesel.

Rival Sainsbury's has since followed, saying it will cut the cost "in many of our stores" by up to 2p per litre tomorrow.

Then Tesco announced a 2p per litre cut on unleaded fuel from this evening and Morrisons said it will cut prices this afternoon, though it hasn't said how much by as it varies locally.

The average price of a litre of petrol yesterday was 134.7p, while diesel was at 140.6p, according to the website Petrolprices.com.

The news doesn't mean Asda or Sainsbury's will be cheapest for all motorists. To find the best deal in your area, check Petrolprices.com.

Despite the cuts, motoring giant the AA believes prices should fall further.

Its head of public affairs Paul Watters says: "We think prices should be lower as the reduction in wholesale prices has not been passed on. There was room for a few more pence.

"The good news is that this usually sets the trend for more forecourts to cut prices." See the Cheap Petrol guide.