Motorists are set to benefit from another round of price cuts by three major supermarkets. Asda, Tesco and Morrisons have all announced that they will drop prices after a fall in wholesale costs.

From Tuesday morning Asda will charge a maximum of 120.7p a litre for unleaded and 124.7p a litre for diesel, while Morrisons and Tesco have announced they will take up to 2p off prices, but do not have a quoted maximum price.

The moves reflect the continuing fall in international oil prices. Asda said it brought its prices to the lowest level since December 2010; over the past month it has cut unleaded prices by 6p a litre and diesel prices by 5p, and other retailers have also made significant cuts.

Asda’s petrol trading director Andy Peake said: “Asda has led and will continue to lead on these price cuts as we know how important it is that we pass savings straight back into driver’s pockets as soon as prices fall.”

The AA’s head of roads policy Paul Watters said: “Asda’s latest price move is a timely boost for UK families as they see fuel consumption go up with the start of winter driving and the heating being switched on at home.”

The RAC said there was still room for further cuts. Its fuel spokesman, Simon Williams, said: “This is not an unexpected cut as there is plenty of margin between wholesale and retail costs for prices to go lower still. Oil continues to be pumped way above global demand, which combined with a strong pound is good news for motorists.”

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