Will Asda's 3p a litre fuel cut spark a new petrol price war?

Asda is cutting unleaded and diesel fuel by 3p a litre.

It said today that the price cut will apply to its 294 filling stations around the country, meaning drivers will pay 110.7 pence per litre for unleaded petrol and 112.7ppl for diesel.

Motorists will benefit from the cheaper fuel prices after a fall in wholesale prices over the past month.

The fuel cut will be welcomed by millions of drivers who have seen prices at the pump rise since Brexit due to the sharp fall in the value of the pound.

Asda’s latest income tracker for September shows that year on year, fuel prices have increased by 1.4%.

It is the first time in more than three years that the data has shown an increase in vehicle fuel prices from the previous year.

Andy Peake, Asda senior director for petrol, 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 110.7ppl on unleaded and 112.7ppl on diesel will be welcomed by the millions of drivers who have seen fuel prices rise since Brexit."