Supermarkets to cut fuel prices ahead of the August bank holiday

Supermarkets Asda and Sainsbury's lead the petrol price war today after announcing they will cut the cost of petrol by up to 2p/litre and diesel by up to 1p/litre. Tesco was quick to follow suit.

As Asda sets a national price cap across its 234 forecourts, drivers will pay no more than 124.7p/litre for petrol and no more than 128.7p/litre for diesel from tomorrow.

Drivers heading to any of Sainsbury's 294 forecourts or any of Tesco's stations will also see the cost of unleaded fall by 2p/litre and 1p/litre for diesel, 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.

However 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 133.74p/litre yesterday, while the cost of unleaded petrol stood at 129.69p/litre.