Morrisons the supermarket has revealed it will cut fuel prices by 2p-a-litre on diesel and 1p per litre on unleaded.
The price reduction came into effect at 8am this morning, and is available at all of Morrison's 293 forecourts across the country.
Mark Todd, Morrisons Petrol Director, said: 'We've shown time and again that as soon as we can pass savings on, our customers are the first to see the benefit and that's what we will continue to do.'
The cut could also spark a price war in towns where rival supermarkets have fuel stations.
The current average price for fuel, according to the AA's monthly report, is 118.1p for unleaded and 120.5p for diesel.