Supermarkets cut the price of fuel
Morrisons started the battle by announcing a 1p a litre cut in the price of petrol and a 3p drop for diesel.
Mark Todd, petrol director for Morrisons, said: 'Wholesale fuel prices are coming down and at Morrisons we always want to pass on savings as soon as we can.
'That is why our customers are receiving an early cut. Rising fuel prices have hit families hard over the past 12 months.'
Asda slashes prices
Rival retailer Asda has covered Morrison's move by knocking 4p off a litre of diesel and 1p off unleaded.
The supermarket has also set a maximum price for its fuel, so its customers will pay no more than 135.7p a litre for diesel and 134.7p a litre for unleaded.
However, despite the price cuts, fuel is still more expensive than it was before the Budget, when the Chancellor reduced fuel duty by 1p a litre.