Asda and Morrisons announced yesterday that they are cutting fuel prices by up to 2p a litre across the country, and now Tesco and Sainsbury's are following suit.
This will bring unleaded fuel to a new national price cap of 114.7p per litre at Asda's 301 filling stations, while diesel will cost consumers 116.7p per litre.
“Over half our forecourts have already reduced the price of fuel by up to 2ppl and customers will see further reductions in our remaining forecourts tomorrow," said Izzy Hexter, Sainsbury’s fuel buying manager.
Morrisons said it aims to drop prices for consumers at its 333 filling stations as soon as possible to keep them "far below the UK average".
According to Asda's income tracker, year-on-year vehicle fuel prices have increased 16.8 per cent, to their highest level since December 2014.
Asda found petrol prices had the largest impact on the rise of the cost of living for families.
Currency movement, an increase in worldwide oil prices and the rise of inflation to 1.8 per cent has caused the steep hike for motorists.
Asda’s head of petrol trading Dave Tyrer said:
Today’s latest move shows that Asda is once again leading the way in reducing the price at the pumps to help the millions of motorists across the UK. Our new national price cap of 114.7ppl on unleaded and 116.7ppl on diesel will be welcomed by the millions of drivers who have seen fuel prices climb over the last 12 months.
Simon Williams, the RAC's fuel spokesman, said: "While this cut may come as a surprise to drivers as prices at the pump have been going the wrong way for months, it is has been on the cards for a couple of weeks. We’re very relieved retailers have acted without any need for outside encouragement."
The cut comes as oil prices mark their biggest week-on-week drop in four months.
"This should now help to bring prices down on every forecourt from the 120p average for unleaded and 122p for diesel," Williams said.