Three of the UK’s big four supermarket chains have announced that they are dropping their fuel prices.

Asda is leading the way, announcing that it has dropped its petrol and diesel prices to its lowest for two years, with a 2p per litre reduction across its filling stations.

It is the second reduction by the supermarket in February and means it has cut its forecourt prices by 9p a litre since the start of 2020.

Motorists filling up at any of Asda’s 322 filling stations will pay no more than 116.7ppl on unleaded and 118.7ppl on diesel from Wednesday February 26.

Lowest prices since 2018

The reduction means diesel has dropped below 120ppl for the first time in two years.

Asda senior fuel buyer, Dave Tyrer said: "We're pleased to be passing on wholesale cost reductions to customers. It will be a welcomed boost, especially to diesel drivers who are seeing some of the lowest fuel prices since 2018.

"Anybody filling up at Asda will pay no more than 116.7ppl on unleaded and 118.7ppl on diesel regardless of where they live.”

Following Asda’s announcement, Morrisons said it would also be cutting 2p per litre from diesel and petrol, effective from Thursday 27.

Ashley Myers, Morrisons head of fuel, said: “We always aim to pass on savings as soon as we can and keep our fuel prices well below the UK average.”

Sainsbury’s has also announced it will match the reductions at its 315 forecourts from Friday, February 28. David Pegg, fuel buying manager for Sainsbury’s, said: “With spring just around the corner, we are committed to helping our customers live well for less, which is why we’re dropping the price of both unleaded petrol and diesel by up to 2 pence per litre across every single one of our forecourts from Friday."

Drivers still losing out

Other fuel retailers have been urged to follow the supermarkets’ lead and offer a fairer deal to drivers.

RAC fuel spokesman Simon Williams said: “The average price of fuel at the big four supermarkets has frustratingly been higher than it should be for the last two weeks. This has an adverse knock-on effect on drivers all over the country as smaller retailers have no incentive to compete, meaning everyone who drives loses out on getting a fair price for their fuel. It’s a shame drivers are made to wait for a 2p a litre cut rather than the supermarkets transparently passing on downward moves in wholesale prices.

“We strongly urge other retailers – big and small – to lower their pump prices so the average price of fuel comes down everywhere. The last Asda fuel cut earlier this month led to the average price of unleaded coming down by 2p a litre so we expect to see an average price of 122p a litre in 10 days’ time. If diesel were to reduce by a similar amount that would yield an average price of 125p per litre, a price last seen nearly two years ago."