ASDA unveiled a new round of fuel cuts today, across all of its 272 filling stations, which mean that, on average, UK drivers will pay no more than 105.7p a litre while diesel remains capped at a maximum 107.7p.

The supermarket giant says this means unleaded moves back to its usual place below diesel after two months of diesel being the cheapest fuel grade and that Asda continues to have the UK’s cheapest national price cap on fuel.

Andy Peake, Asda’s senior director for petrol, said: “We’re now seeing unleaded move back to its traditional place after two months of diesel being the cheapest fuel grade.

"This new drop means drivers across the country will pay no more than 105.7ppl for unleaded and diesel remains at 107.7ppl.

RAC fuel spokesman Simon Williams said: “This is yet more good news for petrol car drivers who have enjoyed prices coming down in August as a result of a barrel of oil staying around or below $50 since the end of July.

"It’s very encouraging to see savings in wholesale petrol being quickly passed on to motorists at the pump.

“This should also have the very positive effect of reducing prices from other retailers around the country.

"Hopefully this will drive the average price of a litre of unleaded down well below its current level of 111p, back towards the six-year average low of 106p a litre we saw in January.”