Monday 29 September 2014 5:14 pm

Tesco, Sainsbury’s and Asda cut petrol prices in latest battle in supermarket price wars

Supermarkets clearly love the smell of diesel in the morning.

Forget Brand Match promotions, in the latest battle between supermarkets in the long-waged war over low prices, the front of the petrol pumps re-opened.

From tomorrow, Tesco and Sainsbury’s will slash fuel prices by up to five pence per litre while Asda will cut up to one pence and two pence for diesel.

The RAC’s Simon Williams told the BBC the cuts “will take us to a new low, the likes of which we haven't seen since late 2010, early 2011”.

In August the wholesale price of petrol fell below £1 per litre for the first time since February, a knock-on effect from a drop in the price of Brent Crude. Supermarkets have decided to pass these savings on to customers again.

War, what is it good for? Motorists, it seems.

It’s not so good for the economy however, as falling prices at the petrol pumps were blamed for contributing to inflation dropping to 1.5 per cent earlier this month, well below the Bank of England’s two per cent target.