Asda has cut the price of unleaded petrol to 114.7p per litre and diesel to 116.7p per litre today at 301 filling stations, starting a a new price war between retailers.

Tesco and Morrisons were quick to announce cuts, following the announcment yesterday.

The average price of a tank of fuel could fall by around £1 this week as a result of the cuts.

The average of cost of unleaded was 120.07p per litre and diesel 122.04p per litre over the weekend.