From today customers at Asda's 196 filling stations will pay no more than 127.7p a litre for petrol and no more than 132.7p a litre for diesel.

Asda said this was the lowest price for a litre of fuel since February 2011.

The latest cut means Asda has shaved 14p off the cost of a litre of fuel since the end of April, reducing the cost of filling up a family car by almost £10.

It comes after the AA said it believed Transport Secretary Justine Greening's calls for fuel price transparency may have helped contribute to a more rapid price fall.

Sainsbury's said it was also reducing its prices, with petrol and diesel coming down by up to 2p per litre.