Asda launches petrol price war: Find the cheapest where you live

To take effect from tomorrow, the cut will take Asda petrol prices down to 115.9p a litre, while its diesel will drop 1p to 118.9p a litre.

Asda commercial director David Miles said: "Yet again, Asda is leading UK fuel prices down. Motorists will be relieved commodity prices are coming down and as always we are the first to reflect falling costs in our prices at the pump."

The news came as the AA said that average UK petrol prices, which reached an all-time record of 121.61p a litre last week, had stabilised for the first time since late February.

The UK price of petrol dipped to 121.54p a litre on Monday, while the average diesel price is now 122.94p a litre.

But the AA said UK fuel prices should have gone down by more, as the wholesale price of petrol in north-west European had fallen of late.

AA president Edmund King added: "The failure so far to pass on wholesale petrol price cuts is leaving hard-pressed drivers feeling short-changed at the pumps.

"Fuel is an unavoidable and essential purchase for drivers and many would prefer to see pump prices come down instead of having to go to the next town for cheaper prices or having to qualify for savings, such as spending 50 in store first."

He went on: "Last week, a co-ordinator for volunteer drivers phoned the AA to say that high fuel prices were threatening an exodus.

"She had recently been contacted by her local ambulance trust asking to borrow volunteer drivers for hospital runs because many of theirs had given up. That is why the AA asks fuel retailers to pass on savings if they can."

Regionally, Yorkshire and Humberside remains the cheapest area for petrol (120.7p a litre) and diesel (122.2p a litre) in the UK.

Northern Ireland (122.1p) and south-east England (also 122.1p) are the most expensive for petrol, while Northern Ireland drivers are also paying most for diesel (123.7p).