Supermarket giant Sainsbury's sparked the latest round of the petrol price cutting war by announcing it will reduce its forecourt prices by 3p a litre.

The cut will come into force today at all of Sainsbury's 266 petrol stations across the country, and also covers diesel.

Last week the AA said that UK petrol prices had fallen 4p and diesel by more than 3.5p in the past month.

Asda, Tesco and Morrisons have all announced price cuts in recent weeks.

Sainsbury's is backing its 3p cut with a sales promotion which offers a further 5p off per litre voucher for customers spending £50 in stores or online.

Richard Crampton, Sainsbury's head of fuel, says: "Wholesale fuel prices have dropped across Europe and we are delighted to pass these savings onto our customers."

Tesco announced a promotion which offers 10p per litre off fuel for customers who buy two packs of Andrex toilet rolls.

The vouchers are being offered from today for shoppers who buy two nine-packs of Andrex, which will cost £8.

The promotion runs until 3 June and customers will have another fortnight to redeem their vouchers.

Tesco UK marketing director David Wood says: "We know families are feeling the pinch and the cost of fuel continues to be a concern for many, so I am delighted to be offering great value in store and on the forecourt."