Last week all four major supermarket chains including ASDA Grocery Online slashed their petrol prices by as much as 3 pence a litre, after the International Energy Agency opened up its reserves resulting in global energy prices falling.

This week,  intensified its efforts to attract motorists by knocking a further 2 pence of the cost of a litre of unleaded, with the cost of a litre of petrol at now costing 128.7p and diesel costing 132.7p

ASDA Grocery Online stepped up the price war earlier today by knocking a further 2 a litre off the cost of unleaded petrol and diesel, meaning motorists filling up their tanks at its supermarkets will not be charged more than 128.7p a litre for petrol and 132.7p a litre for diesel fuel .

ASDA petrol director, Andy Peake, said: “Customers shouldn’t have to buy into gimmicks and promotions to benefit from cheaper petrol – no one should have to pay a premium on food to lower the cost of fuel .”

“Once again ASDA is leading the way in saving drivers money and since Saturday, we’ve taken 5ppl off the cost of filling up.”

Sainsbury’s swiftly responded by announcing that it will also reduce fuel prices “by up to 2p a litre” from midnight tonight.

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In response to the mispriced petrol, long queues began to form at the Asda petrol station in Rooley Lane, Bradford last week, after a staff member misplaced a decimal point in the pricing, setting the price of a litre of petrol as 12.9p at four automated card payment fast lane pumps, instead of the correct £1.29 per litre

Approximately 50 customers were able to take advantage of the mispriced petrol which sold at discount of nearly 1000 per cent. Word of the mistake quickly spread around the city, and some reports suggests that some drivers were able to drive away with a full tank of petrol for just £4 while others filled up their portable petrol cans.

The mistake went unnoticed by staff for two hours and police had to be called out to deal with the increasing traffic.

An Asda spokesman said: “For a couple of hours some lucky customers got some petrol at the wrong price at our Rooley Lane store. We’re well known for having the lowest prices in town, but clearly this was a mistake.”

Asda fired the first shot by cutting the price on Sunday of unleaded petrol to 103.9 p a litre and the cost of diesel to 105.9 p a litre at 179 of its petrol stations.

Before Asda effected the changes, average UK unleaded petrol prices stood at 108.9 p, whilst the average UK diesel price was 110.2 p

David Miles, Asda’s commercial director, said: “With Christmas just around the corner, it’s a time when cash is tight and we want to help our customers make it go further. With this early Christmas present, we’re putting money back in our customers’ pockets wherever they fill up by moving quickly to pass the saving on as our costs fall.”

A spokesperson for Tesco said the retailers price cut would aid million of customers travelling to see family or friends during the holiday season.

She said: “We’re committed to being competitively priced on petrol and with hundreds of petrol stations throughout the country, customers can trust they will get a good price on petrol at Tesco .”

Asda will cut the price of fuel to 101.9p for petrol and 102.9p for diesel. Asda fuel prices are now almost 5p lower than the current national average.

Asda Cuts Petrol Price

Asda Canford Heath general store manager Keith May said: “Once again, we’re moving quickly to pass the saving on to all our customers as our costs fall. If motorists see prices of 105.9 or 106.9 pence per litre, they’d be better off driving past and finding their nearest Asda – even if it’s a 20-mile round trip, they’d still have more money left in their pocket once they’d filled up.”

Asda UK is not the only retailer that has cut the price of fuel with both Tesco’s and Sainsbury’s cutting prices at selected filling stations.

Shopping around could mean motorists save an average of £2.20 filling up a 55-litre tank.

Asda confirmed its latest cut was a result of falling product costs.