Tesco and Asda cut petrol prices

The price of unleaded will fall by up to 2p per litre at Tesco and Asda forecourts from tomorrow morning, while diesel prices will be cut by up to 1p per litre at the same time. (See our Cheap Petrol and Diesel guide for tips on cutting costs.)

Tesco's prices vary by location, while Asda will charge no more than 126.7p per litre for unleaded and 134.7p per litre for diesel.

However, Asda's new national price cap is the same as the one it announced on 29 October, while tomorrow's diesel cap is higher than the 133.7p per litre cap also announced in October (see the Supermarket petrol price cuts MSE News story). It proves how petrol prices have risen in the interim period in order for them to be cut to the same or similar levels tomorrow.

Rival Sainsbury's is not following suit but says it "always remains competitive". Morrisons also won't be cutting prices at a national level, but says it will "remain competitive in every area that we operate".

However tomorrow's price cuts won't mean these supermarkets' forecourts will be the cheapest for petrol and diesel. To find the lowest prices in your area, use the website Petrolprices.com.

The average price of a litre of unleaded petrol today is 131.17p, while a litre of diesel would typically set you back 138.60p, according to the petrol price comparison site.